Subscribe to Trend Following Radio on iTunes
Please enjoy my monologue Performance Data with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
Want to learn more Trend Following? Watch my video here.
Feedback in:
Hey Michael! Currently the biggest challenge I’m facing right now I’m my trading journey is relating to hold my winners and only a few big red days wiping out weeks of work. Have started working on having patience and only taking good RR trades.
Thank
Only a few days? Your strategy is?
I’ll give you the data of this year in short. I trade in the Indian Stock market primarily. Option trading the index’s here. Over trading and around 1-2 big red days in a week wipes out the gains for the month or brings it to a small gain or break even. My strategy is based on Price action purely. But it is more towards discretionary than systematic. It is all to do with chart patterns. I lose the most when I chase and over trade because of being focused/fixated on super short time frame (less than 5mins).
That strategy sounds likes a hot mess. Here is an alternative.
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.
If you are interested in my Flagship product stay tuned for a Black Friday opportunity.
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.
Subscribe to Trend Following Radio on iTunes
My guest today is Richard Brennan, a trader, risk manager and fund compliance professional. Given his leaning towards the quantifiable and verifiable, Richard is a strong advocate for systematic and diversified trading styles that avoid the need for discretionary decision making. He’s based in Australia.
The topic is Trend Following.
Jump in!
Feedback in:
Dear Michael, I’ve been listening to your podcast for almost a decade. Since 2013 I have developed a highly efficient trend following algorithm. However, I am struggling with how and when to apply it using probabilities. I think the answer lays in the probability calculation mentioned in Larry Hite’s book ‘The Rule’ (observable fact divided by no. Times observable fact followed by event). However, I’m still unsure how to use probabilities with what I see occurring around market events. When I get the direct right in backtesting, the algo will risk 1.5% to make between 40 and 140%. Can you offer me any advice or guidance with regards to using probabilities or the application of probability theory?
What is your strategy exactly? Time frame?
My current strategy is – be in the market either long or short. (Get in the game) as Larry put it. I look for confluences with net COT position and MCRI seasonal tendency. It takes at least 15 days for the algo to build a position and get stopped out in profit if the move is in favour. I’m currently trading EURUSD and recently adapted the algo to XAGUSD and WTIUSD.
I can’t help. What you are doing is so far away from trend following (and Larry Hite) it could be on another planet. I would toss that strategy.
Well that was certainly thought provoking! Thank you. Yes I agree, it needs to be ditched and probabilities applied. That’s the bit I’m trying to figure out.
The issue is strategy. Why not go trend following and go robust?
Isn’t a trend following strategy based on probabilities though?
Trend following is based on following the trends.
Since our last communication I’ve worked tirelessly on my trend following systematisation and diversification. I’ve been trading over 20 Markets, and things were looking up! However, it appears the MT4 broker has caught on to my trend following ways and has decided to upset the “probabilities.” I’ve listened to you from the start. I value your no BS approach to life. Can you provide any fatherly encouragement?
If your broker is somehow the reason your trend following is failing? You are not trend following. Bottom line I have no idea what you are doing.
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.
Feedback in:
Michael: I’m new to trading, no experience but like the concepts presented. I don’t want to recreate the wheel and figured it would be good to start with a system with a proven track-record and one that removes the psychological aspects of trading…thanks for your efforts in spreading the word.
Ryan
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.
Feedback in:
Could you please tell me really good technical indicators to spot and indicate the trend?
Best Wishes,
Steven
If you will be a trend following trader you need:
The three best indicators for a trend following trader are: Price, Price and Price. If you think I’m joking you have more work to do!
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.