Trend Following FAQs

Some feedback and FAQ on my trend following products:

Michael, you’ve opened my eyes to the world of trend following, thank you. Your books are fantastic, podcast informative, and I can only imagine that your trend following system will be inline with your other products. I’m writing to find out if your system might be the catalyst for my financial planning practice. I’m 27 and for the last two years I’ve been working with a large financial institution as a financial advisor. I sell my companies products and I repackage their investment process (predominately fundamental) for my clients. But I think I can do better. I’ve always toyed with the idea of going independent (becoming an RIA instead of an IAR) but I’m not confident in the systematic trading that I’ve built on my back-testing program. Would your system provide a solid foundation so I can bring my customers trend following? I’d probably heavily manipulate whatever you provide, and I need to be sure that I can bring this down to the retail investor. For example, What’s the smallest account the system can handle?

See: trendfollowing.com/capital

Does the system have high turnover (regulators don’t like churning)?

No, it’s not day trading. Long term and low turnover trading.

Could different models of volatility be created?

Sure. All rules are adjustable.

Could different risk profiles be matched up with different systems?

Same answer. All adjustable for varying risk tolerances.

What kind of time frame to get everything up and running?

I think you can learn and be trading within 6 weeks or less. Of course, everyone is variable. Remember the Turtle story and their time frame.

Can the system be used for different markets?

I recommend the instruments of futures, leaps options and ETFs. Those instruments across all markets.

This is one of those moments were I am at the edge of the cliff saying f**k it, or it’s where I find out that I don’t have the balls to jump. Thank you for your help and I hope you are enjoying your travels.

Thanks Nick!

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You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content. Out April 24th 2017.