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Hello Mike,

Hope you are doing well.

Someone sent me this video and I couldn’t stop thinking–what would be your response? https://www.youtube.com/watch?v=IzZ-P26eyFQ

I am quite sure that it’s likely to be very straight forward as your other podcasts are.

Would it be possible for you to do an episode on what the “data driven” experts have to predict?

With regards,
Umesh

That video is not related or connected to trend following trading. Start here.

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Feedback in:

Hi Mike,

I have been working with your system for a year now. One of the final things I’m struggling with is when to exit a trend that starts to reverse.

Hypothetically, I identify a buy signal from an end of day high compared to the last X end of day highs.

Over the next week the trend is up past 1.5 ATR. I add another contract. Over the next four weeks I add another four contracts. As I understand the system, no additional contracts are to be added after five 1.5 ATR increases, or contract additions to the initial entry contract.

Over the next two weeks, hypothetically the trend reverses and moves downward. This results in giving back 2% in gains.

What would be your recommendation? Or, better, with the system I have come to believe in and followed what is the rule to riding trends, but not giving gains away. Want to add, I’m looking at a case five contracts have been added and as I understand the rule is we don’t add more than that.

Thank you for your time and continuous contribution.

You have truly changed my vision of what can be.

Darnell F.

Your answer is in your in box!

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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:

A big part of it is just people behind them. I came from fundamental side, I can tell you that the vast majority people on the fundamental side came from a liberal arts background (aka bullshit majors in college), and in liberal arts, the goal is to rationalize, articulate, justify etc. There’s no truth, there’s no first principle. If you want to become a scientist or engineer or doctor, you learn first principles first. But when it comes to markets, they teach narratives first and they don’t teach first principles. If you do teach first principles of making money in markets, which will inevitably lead to trend following in a quick order (i.e. trade with the trend because it is the basis of all profits, cut losers, ride winners, how you do it doesn’t really matter since there’s infinite ways or variation of the above). You mentioned how trend following works better or more resonated with people in Asia because lack of good financial accounting etc. So price is really the only thing people can trust, there’s some truth to it. So long story short, I think that’s the causal mechanism led to where we are.

Same on the political front/our government, USA political system is run by people with a law background, that’s why we have thousands of pages of junk for things like tax rate (I think it’s in the millions of pages now which is crazy). But the beauty of the market is like physics, there’s the objective truth and we all know what that is. At least there’s hope here because DOGE is showing them the first principle first hand.

David L.

Nice feedback!

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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.

Reader: One other note, I know you are all systematic diversified trend following. Is there something in particular make you less interested in discretionary trend following. I mean Livermore, Darvas etc. Or just you think systematic is more applicable for the average Joe.

Me: My first two books? Trend Following. TurtleTrader. Seen? All the detail is there. Your question answered. A lot of work I share.

Reader: I went thru all of your stuff. I just never understood your stance against rules based discretionary trend following.

Me: The overwhelming proof across 220,000 words in TF. The turtle story. The podcast interviews. How could I ever think discretionary gut stuff is superior?

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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

Please enjoy my monologue Markets Whipsaw with Michael Covel on Trend Following Radio.

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Gee Michael. Your baseball coach, to current Dunn head? What a story!!

I love the part about… if you hadn’t put it together, it would (likely) have gone, otherwise, unrevealed.

And, as we stand on the shoulders of giants, (including yours). RIP Bill Dunn.

Separate note: I’ve switched from daily to weekly (Friday close) bars, for my home equity TF experiment (fractional $1 positions via Robinhood, last weekend, closing 308 holdings). So much time has opened up, freed up!

All Best,
Josh C.

Thanks!

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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:

My biggest trading challenge is fear of failure. My belief is I have to quit my career and do this full time. At age 60, quitting my career is akin to nailing a door shut. What if I fail at trading to make living?

Thanks for asking the question to cause me to put this in words.

Jim O.

Here to help.

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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.