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David Harding on EMT: Trend Following 5th edition

From my newest:

David Harding goes further, explaining EMT madness in an every-man way: “This theory of rational markets treats economics like a physical science—like Newtonian physics—when in fact it is a human or social science. Human beings are prone to unpredictable behavior, to over-reaction or slumbering inaction, to mania and panic. The markets that reflect this behavior do not assume some supra-human wisdom, they can and sometimes do reflect that volatility.”

Further translation: Human nature isn’t rational. It blows bubbles and then pops bubbles.


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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.

“For some reason today was the day I discovered your podcast…”

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For some reason today was the day I discovered your podcast. I listened to your interview with Art Collins and of course I loved it. As a financial advisor, for the past decade, I have built client portfolios using the research from Dorsey Wright & Associates. So, I am already a devout trend follower but I think this is the ideal time to take my knowledge and commitment to another level. Please send the free video and anything else you think I should look at! Thanks so much!

Best,
[Name]

Will do.

Check out also this.


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.

Ep. 578: Be the Man with Michael Covel on Trend Following Radio

Be the Man with Michael Covel on Trend Following Radio
Be the Man with Michael Covel on Trend Following Radio

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Please enjoy my monologue Be the Man with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

In this episode of Trend Following Radio:

  • Ivy League quotas
  • The American dream
  • Asian Americans
  • Fair competition
  • The secret sauce myth
  • Letting go

Mentions & Resources:

Listen to this episode:

Want to learn more Trend Following? Watch my video here.

Ep. 577: Art Collins Interview with Michael Covel on Trend Following Radio

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My guest today is Art Collins, the author of “Beating the Financial Futures Market: Combining Small Biases Into Powerful Money Making Strategies”, “When Supertraders Meet Kryptonite”, “Market Rap: The Odyssey of a Still-Struggling Commodity Trader” and “Market Beaters.” He has been trading systematically for the past 30 years. Throughout the years Art wasn’t only focused on trading markets. He also studied how to beat the blackjack table and how to skew the odds in his favor when betting on sports.

The topic is trading.

In this episode of Trend Following Radio we discuss:

  • Systems trading
  • Richard Dennis
  • Card Counting
  • Mechanical systems
  • Robustness
  • Data mining

Mentions & Resources:

Listen to this episode:

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John Kenneth Galbraith on Euphoric Times

One:

John Kenneth Galbraith noting that in euphoric times, “past experience, to the extent that it is part of memory at all, is dismissed as the primitive refuge of those who do not have the insight to appreciate the incredible wonders of the present.”

Two:

Here’s a great observation on the subject from Berkshire-Hathaway’s 2010 letter to shareholders: We agree with investment writer Ray DeVoe’s observation, “More money has been lost reaching for yield than at the point of a gun.”

Shout to Howard Marks for the finds.


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
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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.

“I serendiptitously had Ed Seykota as neighbor…”

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Michael,

I started my career with E.D.&F. Man in NYC in the early 1980’s and later in London. I had the pleasure of meeting Larry Hite & Peter Matthews in New York. They started me on my trend following and quantitative asset management journey.

Between NY and London the Man Group had me work for a while in Hamilton Bermuda. While living on an incredible estate on the South Shore I serendipitously had Ed Seykota as neighbor (he lived in the main house and I lived in the guest house on the old J.P. Morgan estate). Ed was generous with his time, whiskey and cigars and I learned a great deal in the short time we were neighbors.

In London, I was around for those exciting years when Man began its initial expansion into the CTA/AI world. One of its first major acquisitions was of AHL (Adam, Harding and Leuck).

Your book is like a walk down memory lane for me and I wanted to thank you for it!

What strikes me as incredible is just how resistant mainstream institutions remain after over 3 decades of evidence as to the efficacy of trend following and the abject failure of EMT based asset management. I work for a major US Bank/Brokerage/Financial Management Firm of the ‘Too Big to Fail” ilk and the policies it pursues are clearly about managing their “liability” as opposed to managing their clients money in a results oriented manner. Fortunately, I have found a team within this environment that is swimming against the current and has fully embraced trend following to develop strategies for its clients. Our activities are viewed as subversive but are for the most part tolerated…to date.

I look forward to devouring your book and the ammunition it will provide me in my personal mission to help as many innocent investors stuck in the EMT trap!

Best regards,
[Name]

Thanks for the great feedback!


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.

“…the best entry system?”

Feedback in:

Dear Michael,

I recently finished your new book, Trend Following. This is your best work to date and I thoroughly enjoyed reading it!

I was hoping to get some guidance from you regarding the best entry system. In chapter 23 of your book, you do a great job of comparing the 50-day channel breakout to the 10X100 simple moving average crossover. It appears to me that the moving average results were superior to the channel breakout method. While both methods have demonstrated good historic results, which method do you recommend today?

Thanks and best regards,
[Name]

It’s not an either or answer.

Both work.

Please don’t think my answer is curt or blunt, it’s not!


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.