Trend Following Mail Bag; June 29th Edition

Someone asked about mentorship…

I do mentor people–many–here.

Thanks, but I meant more personal. I understand you are busy.

You have to start somewhere valid. If someone wants it overnight–I am not your guy.

I know, of course I understand that, I am 27 (soon to be at least), I understand that much about the world. That is why I was hoping for the mentorship. I can honestly probably get a job in a week or two if I wanted, just tired of having a “daddy” as in someone I need permission from to go to vacation, limited vacations per annum, etc etc, no way for me to spend my life.

My world is an open book. I get people there faster. That’s it.

You mean in general or are you trying to sell me on that package? I can tell you’re a good guy based on your podcasts and viewpoints on things like the ‘elite’, which I share.

People can take advantage of my lessons here:

That’s it. I don’t do more than that for the outside world. Then again, that’s not chopped liver.

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For the first time in my investing history, I am totally relaxed with everything that is going on. I have read enough of what you write and listened to enough of you podcasts to feel totally at ease with your recommendations. The best part is that when I do read “the sky is falling” newsletters, I can read between the lines and not panic. Thank you for all that you do.



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I got your book, and have heard most of your interviews (and there are lots of them) and want to take up your recurrent offer to get in touch to get the video and the next step to take.

I will join a startup “hedge fund” here in Sweden that is focusing on daily market making strategies. Closing all positions EOD. We are collocated in Chicago (the futures markets) and will get a nice AUM to play with.

I would like to build a trend following robot that is profitable and can close all positions over night. Who is doing this kind of thing, does it make sense or do you loose to much on not running the long trends? Would running averages from minutes to hours make any sense? Slippage and transaction costs are low or negligible?

To be direct: what is the next step to take?


Trend following is not for day trading. Having a rule to close positions every day could never be considered trend following. Steps? Go.

Thank you for your fast and kind answer. Let’s see if we can dig a bit further. Could we play “4 why’s”? Why would trend following not work on time scales of seconds, minutes or hours? Wouldn’t markets be somewhat self similar and have trending behavior on most scales?

More on the subject here.

Thanks Mike. Slippage, cost and execution. The good news is that we are working on all those challenges for our other systems. When we have master that I’ll revisit short term trending. Will keep you posted. Now I am listening to the Ed Seykota #2 interview. All the best and greeting from Sweden.

Best of luck but “day trading arbitrage high frequency” stuff is not my concern. I don’t follow it.

What is the shortest time scale where trend following make sense to you?

So here is how I would approach this:

1. You can trust me that TF is not short term. Or you can verify and read a ton.

2. If you want to investigate short term look to HFT shops and the likes of Toby Crabel.

3. A great TF trade could last over a year.

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Good day, Michael,

I have just listened to a very inspiring podcast of yours about the trend following. After all [the] loses I had from my trading experience, I am now learning, yes learning to stay in the trade and not to cut my profits short. I am already two years at following the markets, mostly currencies and, traded live accounts but kept loosing. I am learning my lessons. After each loss I have analyzed why I have lost. Trading paper and educating myself about trading psychology. I believe I will make it happen. Market taught me a lot of interesting things. I am working on it, working hard. Thank you for all that smart, wise material you are putting out for people. Trend following sticks natural to me. You have mentioned you can help to get me started with tips and [a] free video. I am kindly asking for it, to set yet another peace of puzzle to my journey.

Thank you kindly.

Starting steps.

Free podcast:

Premium products:

If you really want to go fast my Flagship is it.

That will keep you busy.

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Dear Michael, In the past 6 months, I’ve listened to more than 200 of your podcasts, some of them multiple times

Not for the trend following and investing content, but because of your unique communication style and the way you deliver your speeches

I actually enjoy more the podcasts where you play solo, they are much more engaging. I would be grateful to you if you can share with me some tips about how to reach the top in terms of communication and speech delivery style. My vision is to become within a year or two a keynote speaker for my company where I address large audiences with an inspiring communication style about sales, technology and transformation.

Appreciate your help,


Thanks for the nice words!

No short answers…

1. Read book about practice from Anders Ericsson called Peak.

2. Listen to your favorite talkers. All the time. Take notes. Try to dissect them.

3. Howard Stern is wild, but a great talker.

4. Get in front of live audiences all the time.

5. Have a subject you can talk about all day no notes.

6. Most people in audience don’t know what you know, so can’t be afraid. Afraid? It shows. Hardest one…

This will all take time.

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Hi Michael: Greetings from London, UK (or possibly soon to be just England in the not too distant future!). Love love love your podcast. I got into trading quite by chance last year, primarily the FOREX and my interest keeps growing. I’d like to start trading equities, commodities, futures, options, i.e. EVERYTHING! Found your podcast just by searching iTunes for podcasts on trading and although I couldn’t find many good ones yours is absolutely fantastic (incomparable to everything else!). Since listening to your interview with Van Tharp, I’ve just about finished reading Trading Your Way To Financial Freedom.

Thanks for sending me all your links. I look forward to going through everything and listening to many more of your podcasts.

Many thanks for all your hard work and sharing your thoughts.


You are welcome!

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Dear Michael, I want to thank you for the work you are doing for the traders, and of course for me. I have recently discovered your work, the podcasts, and I find it extremely useful. Every subject you touch, and every person you interview, gives a lot of value to my mindset as a trader. It gives new ideas and inspiration to make a difference. Thank you for the books I am reading them and drink every wise word.

Big thank you again.


You are welcome.

Shout to everyone who takes the time to reach out.