Running Trend Following Systems with Non-Trend Following Systems

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I attended Michael’s presentation at Bloomberg in Singapore. I have read Trend Following and I was very impressed so wanted to find out more. I am an independent trader after a 25 year career at investment banks and follow a pattern recognition methodology across a wide range of asset classes. I look for set ups and decent risk/reward ratios to act. I struggle with some psychological parts and position sizing of which I am aware of. My question is that I buy into the trend following philosophy and very much would like to try to implement it, but I am unsure of what signals or system to use. As my pattern recognition philosophy tends to be more short term orientated, if I was to purchase one of your systems do you think I can run it alongside and independent of a pattern recognition philosophy or should I try to implement the two, maybe using pattern recognition for entry and exit signals.

Thanks and kind regards,

I would absolutely not combine the two. Run them separate. Maybe, over time with experience you could see some sort of synthesis, but not wise to do that out of the gate. Better to come on board to trend following, see the nuances, act, execute and then ponder other ideas down the road.

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.