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Armenian Innovation

Apr 17, 2017

#WhyArmenia: Richard Donchian

Do you want to find out what's up with the market? Donchian found a way to do so! 

Richard Donchian was an Armenian-American commodities and futures trader, and pioneer in the field of managed futures. He received his Bachelor’s degree in Economics from Yale University, and later graduated from MIT Sloan School of Management with an MBA.

Richard’s strong background in business and economics is not the only factor that made him successful in his field: his position as an assistant in his family’s Oriental rug business gave him an insight of the market.

Richard developed a rule based trading approach which became known as Trend Following. It is based on the assumption that commodity prices moved in long, sustained moves. Richard developed and used a trading system that incorporated Trading rulesTrading guidelines, and his weekly rule system based on moving averages. He wrote many articles on futures trading and securities and became known as the father of trend following.

Many modern trend following systems, such as the Turtle Trading system, are based on his work.