BlogJune 27, 2023Michael Covel

“Or you don’t recommend trend following for smaller accounts…”

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Hi Michael,

I read the two books you recommend at the end of your video (and I watched the video too.)

I have a question.

You demonstrate convincingly that for a large account (or better yet, for a CPA) it is a stable and reliable technique to select a diversified portfolio and manage it with some trend following strategy. You even demonstrate that the nature of the strategy matters less than diversification.

I understand that.

The question is, do you recommend using a trend following strategy for an account of let’s say $10,000. Or $1,000. I.e. for an account size where diversification is not a realistic option.

I didn’t find (so far) an answer to this question in the material I reviewed. Do you have it in some other book or website of yours? I.e. (I assume) some technique on how to select one stock or futures for this account-size and how to select one trend following strategy for it. Or you don’t recommend trend following for smaller accounts?

Thanks.

Of course, super small accounts are trouble. That’s true for any strategy.

More: trendfollowing.com/capital.

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