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Ep. 599: Trend Following Insights and Lessons with Michael Covel on Trend Following Radio

Trend Following
Trend Following

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Michael has audio books for Trend Following (fourth and fifth editions), The Complete TurtleTrader and Trend Commandments. He starts the podcast today playing the afterword to the 5th edition of Trend Following written by Larry Hite. He follows this reading with Stig Ostgaard’s white paper titled “The Origins of Trend Following” first published in Trend Commandments. Michael finishes up the podcast playing a full chapter on psychology from his newest edition of Trend Following.

In this episode of Trend Following Radio:

  • Psychology of trading
  • Irrationality of people
  • Behavioral economics
  • The meaning of money
  • NLP
  • Evolution of trend following
  • How Larry Hite began trading
  • Risk management

Mentions & Resources:

Want a FREE Trend Following Video? Get it here.

“I don’t trust the government and I don’t trust Wall Street, please help…”

Feedback in:

Hi Michael,

I have become a regular listener to your podcasts. I think I have started from episode 560 or something… I will certainly go back to listen to them all.

Two points:

1. Is your new trend following book (5th edition) the updated version of the initial trend following book? (Please see the attached images)

2. Please send me the right steps to take, as you suggest at the end of each podcast. I don’t trust the government and I don’t trust Wall Street, please help.

Kind regards,
[Name]

I sent you the starting steps via email. Here is what the new book looks like:

Fun Picture Serious Subject
Fun Picture Serious Subject

Trend Following: “The dream is alive!”

Feedback in:

Hi Michael,

Had to reopen my facebook account to send you this message:

Since we last spoke I found a businessman who exited a hedge fund for substantial gains and wanted to go again in his own fund. I pitched him my trend following algorithm (learned from your book) along with my custom code and backtest data. He liked what he heard and seeded the fund and we are doing well. We are building a prospectus and going to start soliciting in 2018. The dream is alive! Thanks again for writing your book and congratulations on the recent update.

Welcome!

Trend Following: “First, I am a big fan…”

Feedback in:

Hi Michael,

First, I am a big fan and particularly liked your books on TurtleTraders and Trend Following.

I used info in those books to invest with [name]. I am looking for some younger/up and coming players/traders in the Trend following space. Is there a list of somewhere of the next generation of traders doing this sort of thing for investor that you could recommend? Or a few people who you feel are going about it in the right way (like Tom Shanks or Jerry Parker)? I would appreciate an insight you have.

Thank you,
[Name]

I avoid recommendations, but across my books and podcast you can see so many names. I know that’s not ordered necessarily, but it’s not something I keep track of tightly. It just requires a little sifting on your end.

Ep. 598: Trading Legends Epic Episode on Trend Following Radio

Mega Ep with 4 Trading Legends
Mega Ep with 4 Trading Legends

Subscribe to Trend Following Radio on iTunes

Today’s combo episode consists of four classic episodes aggregated into one big modern podcast. Jack Schwager, Peter Brandt, Larry Williams and Toby Crabel are four pro traders who hopefully give every listener an aha moment.

Jack Schwager is author of the Market Wizards series and just completed his second edition of A Complete Guide to the Futures Markets: Fundamental Analysis, Technical Analysis, Trading, Spreads, and Options.

Peter Brandt is author of Diary of a Professional Commodity Trader: Lessons from 21 Weeks of Real Trading, and a trader who has been in the commodity trading space since 1976. He has traded his own proprietary account from the late 1970’s until today, and is currently entering the hedge fund world by running a multi-CTA fund-of-funds.

Larry Williams is the author of eleven books, most on stocks and commodity trading. He is also a stock and commodity trader, and politician. He has been in the trading game for over four decades and his name is well known in all trading circles.

Toby Crabel is founder of Crabel Capital Management. Toby is a short term systematic trader which is a much different trading style than trend following. Toby is also a former pro tennis player and has a philosophical nature in discussing the trading world.

In this episode of Trend Following Radio:

  • Fundamentals vs. Technical analysis
  • Risk management
  • Contrarian view on fundamentals
  • Charting
  • Science vs. art in trading
  • Whipsaws
  • Exploiting trends
  • Sharpe ratio
  • Efficient market hypothesis
  • Five minute chart patterns vs. a weekly chart patterns
  • Mistakes as a novice trader
  • Averaging losers
  • Risk management
  • Upside volatility
  • Reducing incessant head chatter
  • Living in the moment of now.
  • Price movement and volume
  • Price shocks
  • Diversification
  • Objectivism

Mentions & Resources:

Want a FREE Trend Following Video? Get it here.

“[Your work] has helped transform my thinking on investing, trading and life…”

Feedback in:

Hi Michael,

I love your work. Podcast, books and website. It has helped transform my thinking on investing, trading and life in general. A larger portion of my investment and trading capital has moved to a semi-automated longer term diversified trend following portfolio. My returns have improved and more importantly my peace of mind about my investment portfolio has sky rocketed.

My “day job” of driving a Tractor Trailer for the big brown machine leaves me with a lot of time to listen to podcasts. I love many of them. You are a great interviewer. None of them feel canned or forced. The Tom Basso and Ed Seykota interviews especially. I just finished re-listening to the interview with Amy Herman and I am almost done with her book Visual Intelligence. Both are fascinating. A recommendation for a similar interview would be Betty Edwards author of Drawing on the Right side of the Brain. It gives another method of using art, drawing to help transform your perspective of the world around us. Have you ever tried to get Edward Thorp on your podcast? I would love to hear you talk with him. A fascinating person but most interviews I have heard with him have been painful to say the least. Not because of him but the interviewer did not know their stuff.

Thank you for your great work. I still have a lot to listen to and read.

[Name]

Thanks for the nice words!