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Ep. 1345: Jerry Parker and Moritz Seibert with Michael Covel on Trend Following Radio

Jerry Parker and Moritz Seibert
Jerry Parker and Moritz Seibert

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My guests today are Jerry Parker and Moritz Seibert.

Jerry Parker, the founder of Chesapeake Capital Corporation, a global investment manager headquartered in Richmond, Virginia, in 1988. He was an original TurtleTrader, the most successful TurtleTrader.

Moritz Seibert, Founder & CEO at Takahē Capital, a systematic investment manager targeting absolute returns through resilient trading strategies. He is also the co-host at Top Traders Unplugged.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • Risk and drawdown expectations in trend following
  • Systematic v. discretionary
  • Leverage in CTA performance
  • Performance fees, clawbacks, and client alignment
  • CTA, managed futures, and their marketing implications

Mentions & Resources:

Listen to this episode:

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“I manage a small trend following fund inspired by the same high-octane approach…”

Feedback in:

Good day Mr. Covel,

I’m an Air Force service member based in Georgia, and I manage a small trend following fund inspired by the same high-octane approach I’ve seen reflected in your books and some of your interviewees.

I launched earlier this year with under $50k in AUM, which some would say is impossible but I’m enjoying the process. I want to thank you for all the information you put out and looking forward to picking apart more nuggets!

Just wanted to introduce myself and hoped to connect. Wishing you continued success.

Respectfully,
J. M.

Nice to connect. Best of luck!


How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

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Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

“The Brazilian Equity Market shows that even the…”

Feedback in:

Hello Michael, greetings from Brazil.

I’ve been listening to your podcast for a while, have read the market wizard books as well. The Brazilian Equity Market shows that even the “best professionals” with c-level access don’t have an edge and can’t generate alpha when the trend and money flow is not there. So I would like to study more about trend following. Appreciate if you can send me in the right path.

Best regards,
Thiago C.

Video sent. Enjoy!


How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

Trend Following Podcast Guests
Frequently Asked Questions
Performance
Research
Markets to Trade
Crisis Times
Trading Technology
About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

“Does cutting losses early also mean selling an index…”

Feedback in:

Hi Michael,

Thank you for your email and books. Does cutting losses early also mean selling an index ETF such as SPY or VOO when there is a drawdown such as the one experienced in April (or countless other episodes)? Or are you referring only to single-stock or sector trades?

Thanks,
Nikolai

Cutting losses inside a trend following system applies to all markets. Cutting losses doesn’t mean new entry signals can’t appear again in that same market.


How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

Trend Following Podcast Guests
Frequently Asked Questions
Performance
Research
Markets to Trade
Crisis Times
Trading Technology
About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

“Not high enough to overcome whipsaws and commission costs…”

Feedback in:

I did trend following a long time ago. It did not work for me because my win pct was not high enough to overcome whipsaws and commission costs and a generally sideways market condition (IIRC, it was a while ago). I did not trade commodities or options as I did not know how to get started in those markets at that time. My reason for renewed interest is the advent of fractional trading and low/no commission trading and whether that would enable trading at a more comfortable price level and buffer the effects of a sideways market. How viable is this strategy in today’s markets amidst program trading, etc?

Owen S.

Some points:

1. I don’t know exactly what you were doing before so I don’t know if you were trading as a trend follower exactly.
2. Trend following never stopped.
3. Not sure what you mean by program trading exactly, but #2 is still true.


How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

Trend Following Podcast Guests
Frequently Asked Questions
Performance
Research
Markets to Trade
Crisis Times
Trading Technology
About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

“Am looking for profit taking strategies for my BTC…”

Feedback in:

Hello Michael,

Apologies for the late follow up. Allow me to clarify where I am and where I hope to be.

I am a novice retail investor who recently completed a very useful technical analysis training. I still have not used it to do any form of day trading and instead am looking for profit taking strategies for my BTC. I have been fortunate enough to have had the wherewithal to make a 35% portfolio allocation in BTC when it was 30K in price. I have allocated 25% in traditional stocks focused on commodities (precious metals/agriculture/small cap energy stocks).

With the onset of wars and prospects of Digital Euro, European capital controls, I feel my portfolio is not balanced enough, not only in terms of types of securities but also in terms of strategy. More importantly I am coming to Trend Following having listened and profoundly aligned with [name] geopolitical outlook. For that very reason I receive his [name] substack market reports.

In order to get a basic understanding of Trend Following without having to commit several thousand, I am currently reading his book [name].

Here is the first question that pops out about Trend Following. In his book [name] makes a big deal about the distinction between traditional ‘buy low sell high’ thesis versus Trend Following. Yet he goes on to say that in Trend Following one buys close to when price action goes from bear to bull and vice versa. That is exactly what I have learned from my tech analysis training. I.e. When price action (two or more candlesticks) confirm on the moving averages acting as support or resistance for selling.

In his last report [name] indicated BTC as a strong buy or hold with a strength of 100%.

I am not expecting you to explain [name] report. Rather from an overall Trend Following perspective please explain the differences between buying low and selling high versus Trend Following concept of buying at the early stages of a bull cycle and selling at the early stages of a bear cycle?

How can Trend Following help with dollar cost averaging in or out? My previous training placed a heavy emphasis avoiding the temptation of trying to pin down the exact top or bottom. Instead use tools such as Fibonacci retracement levels to either incrementally take profits as price action falls below levels as resistance or dollar cost average into support levels. I am assuming Trend Following does not recommend one try to go in with large allocations?

With regards personal finance I was referring to portfolio allocation of funds. i.e.

Divide overall net worth and income from day to day living costs
To differentiate between the needs and wants
Expenses that bring value/joy from those that are frivolous

From that to determine what to allocate for investments, savings interest rates, btc staking, mining, stock dividends etc.

Also how different is your Trend Following strategy to [name]?

I thank you for your patience as I become clear on my decision.

Yours sincerely,
S. S.

Trend following is not candlesticks, cycles, early stages, dollar cost averaging, exact tops or bottoms, Fibonacci retracement, support levels or taking profits. I don’t see that you have any idea what trend following is. None at all. Start here.


How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

Trend Following Podcast Guests
Frequently Asked Questions
Performance
Research
Markets to Trade
Crisis Times
Trading Technology
About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.