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Trend Following: “The dream is alive!”

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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…”

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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

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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…”

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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!

Trading Food for Thought: October 15th Edition

Food for thought:

Enjoy.

Ep. 597: Moritz Czubatinski Interview with Michael Covel on Trend Following Radio

Moritz Czubatinski
Moritz Czubatinski

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Moritz Czubatinski specializes in helping traders get going. He has been traveling, trading and running a business for about 8 years. Tradeciety, his first business, was formed to help traders get started in the markets. Next, Moritz started a trading journal software company called Edgewonk. Every trader needs a journal, and when Moritz started out trading, there were no practical journals available.

Moritz started off as a professional poker player but wanted a more legitimate way of making money. He started his trading career with zero education in finance and now trades off 8 to 10 charts for 6 to 8 hours a day. He was use to playing 24 tables of poker at a time (online) so Moritz is use to the constant action. He saw trading as a perfect career shift. Another positive about making the jump to trading from poker? The playing field is constant. In poker, as you get better, the players you play against get better. In trading, the great traders are forever competing against newbies.

What is Moritz favorite market? He likes trading currency futures because it is open 24 hours a day, 5 days a week. Michael asks if this type of constant action, from a concentration and time stand point, will be more difficult for today’s generation. Are they able to sit in front of a screen 6 to 8 hours a day? Will they be as successful at it? 90% of the people Moritz mentors will not stay in day trading. Most feel miserable. Moritz watches a screen all day for work and then to relax, he plays video games. Watching screens is just what he loves to do. Michael and Moritz finish the conversation talking travel and the best places to visit.

In this episode of Trend Following Radio:

  • Bitcoin
  • Currencies
  • Win rates vs. Risk ratios
  • Trading time frames
  • Poker
  • Day trading
  • Winning vs. losing probabilities
  • Richard Dennis in the trading pits
  • Trading journal
  • Sleep hygiene

Mentions & Resources:

Want a FREE Trend Following Video? Get it here.