“My goal is to be totally systematic within the year. I fully understand that being systematic does not mean I do nothing…”

Feedback in:

I would like to start with I am trying to program my strategy to be systematic. When you did your talk with Jim just the other day, I asked you, “did you have a programmer you could refer to me?” My conclusion from what you said is I need to learn C++. as I do not think you can trade C Sharp on MT4. I trade the Forex and have been relatively successful. I have been using the 1-hour chart to determine the overall trend for the 15 min chart. I have been thinking that maybe I should use the 30 min chart or some other indicator for an overall trend. So I would like to know what you use if anything for your overall trend. But the big elephant in the room today is since December I have been traded well, but in the last 3 and a half weeks the market has not gone my way. I have not been able to figure out what is different. I know that you and Jim both talk a lot about the different markets and that you cannot always trade the same for each market. I have to figure out how to know what the different markets are and when they change so that I can adjust how I trade. If you could give me some insight here that would be very helpful. My goal is to be totally systematic within the year. I fully understand that being systematic does not mean I do nothing. I have so many ideas that I would like to pursue trading, but it is hard to have the time to do the work testing the ideas and trade the one the seams to be working.

Thank you for your time and consideration.

D. H.

You seek to code an hourly bar system? I would stop that. Stop the day trading. More.

“Thanks for the work you have done with the podcast…”

Feedback in:

Hi Michael:

I have just finished your first episode on your podcast I realize it’s now 8 years old but I’ve just discovered it at the end of your episode you said to send an email and you will send the trend following steps and a video. Thanks for the work you have done with the pod.

Welcome!

After hearing Larry Hite–he rang very loudly to me. His overall method/strategy sounded very appealing. I am 43-years old am a sports commentator in Australia who due to a poor investment I am back to square one. In your view does your course supply me with enough content to get started in this field and build on my skill from there. In other words where is the course designed to have you situated at the end of 18 months.

Cheers,

B. Y.

You will be a trend following trader. Ready to go. Full understanding. Full systems. In a position to profit, but you will get there much sooner than 18 months.

Ep. 868: Peter Linneman Interview with Michael Covel on Trend Following Radio

Peter Linneman
Peter Linneman

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I am always fortunate to bring on interesting minds to this show. Today is no exception. Through a connection I was introduced to Peter Linneman and given the current state of global economies it made all the sense in the world to have Peter on ASAP.

Peter Linneman is the principal of Linneman Associates, the CEO and founder of American Land Fund and of KL Realty. He previously served as the Albert Sussman Professor of Real Estate, Finance, and Public Policy at the Wharton School of the University of Pennsylvania in Philadelphia, Pennsylvania, retiring in December 2010. Linneman served as the founding chairman of Wharton’s Real Estate Department, and was the Director of Wharton’s Samuel Zell and Robert Lurie Real Estate Center for 13 years. He is also the founding co-editor of the Wharton Real Estate Review. Linneman has also been named one of the 100 Most Powerful People in New York real estate according to The New York Observer and one of the 25 most influential people in commercial real estate by Realtor Magazine. Going back to the early days, both Peter’s Masters and Doctorate degrees in Economics came under the tutelage of Nobel Prize winners Milton Friedman, Gary Becker, George Stigler, Ted Schultz and Jim Heckman.

In this episode of Trend Following Radio:

  • COVID Nightmare
  • Shutdowns
  • Recovery and Rebound
  • Unemployment
  • Fear and Greed
  • The Value of the Human Life

Mentions & Resources:

“My biggest challenge is accepting that price is the score, both in terms of entry and exits…”

Feedback in:

My biggest challenge is accepting that price is the score, both in terms of entry and exits. Being an accountant I stereotypically began my investment journey as a value guy (Joel Greenblatt’s Magic formula), did ok, some wins some loses, but what held me back was missing a lot of entries on winners I had identified but not executed on (anchoring bias stopped me paying for something up say ~1-5% even though they would go on to become big wins) combined with on the other side holding too many only ok stocks (not losers but not winners either, but opportunity cost hit me). I don’t see myself as a TA guy (for lots of different reasons) but having recently discovered momentum/trending in the past year, my retrospective analysis showed me that my performance would have been better if I had combined price momentum with my investment approach. I am keen to learn more but it’s already helped me with the recent turbulence, getting out in February and not rushing to catch a falling knife. Still more challenges ahead and looking forward to improving… P.S. thanks for your books and podcasts

Keep learning. Keep avoiding traditional technical analysis.

“My biggest challenge at the moment is reading the charts in stocks…”

Feedback in:

My biggest challenge at the moment is reading the charts in stocks. I have a good idea of what to invest in, mostly tech, just finding that good entry points by price analysis is my challenge. I just started reading TurtleTrader and going to start the Trend Following audio books.

Nathaniel

Let me ask you — reading charts — what do you mean?

Trend following is not about reading charts.

Ep. 867: Rebecca Henderson Interview with Michael Covel on Trend Following Radio

Rebecca Henderson
Rebecca Henderson

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Free market capitalism is one of humanity’s greatest inventions and the greatest source of prosperity the world has ever seen. But this success has been costly. Capitalism is on the verge of destroying the planet and destabilizing society as wealth rushes to the top. The time for action is running short.

Rebecca Henderson’s rigorous research in economics, psychology, and organizational behavior, as well as her many years of work with companies around the world, gives us a path forward. She debunks the worldview that the only purpose of business is to make money and maximize shareholder value. She shows that we have failed to reimagine capitalism so that it is not only an engine of prosperity but also a system that is in harmony with environmental realities, striving for social justice and the demands of truly democratic institutions.

Henderson’s deep understanding of how change takes place, combined with fascinating in-depth stories of companies that have made the first steps towards reimagining capitalism, provides inspiring insight into what capitalism can be. With rich discussions of how the worlds of finance, governance, and leadership must also evolve, Henderson provides the pragmatic foundation for navigating a world faced with unprecedented challenge, but also with extraordinary opportunity for those who can get it right.

Bio: Rebecca Henderson is the McArthur University Professor at Harvard University (the highest honor that can be awarded to a faculty member), where she teaches the acclaimed course on “Reimagining Capitalism.” Henderson spent the first twenty-one years of her career at MIT’s Sloan School where she was “teacher of the year” and where her research focused on the economics of innovation and on the question of how large organizations can reinvent themselves.

In this episode of Trend Following Radio:

  • Coronavirus Pandemic
  • Climate Change and Inequality
  • Healthcare
  • Capitalism and Politics
  • Wealth and Ordinary People
  • Capital and Labor Balance

Mentions & Resources:

“My biggest challenge so far is being able to analyze the data to find a solid trend-based methodology…”

Feedback in:

My biggest challenge so far is being able to analyze the data to find a solid trend-based methodology that will provide a high level of successful trades (greater than 80%) with minimal amounts of loss on the negative trades. Crunching that much data to find the combination of trend data to follow for success. I am starting to work with a programmer since I don’t have time or refine my coding skills to crunch the data myself.

80% winning trades? That’s not an option. You won’t ever get there. A false goal if there ever was one. It’s not trend following either. Resources to explore.