The Bitcoin Episode with Andreas Antonopoulos and Harry Yeh with Michael Covel on Trend Following Radio
Please enjoy my monologue The Bitcoin Episode with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
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My guest today is Gary Dayton. Dayton stands apart as a trading psychologist in his use of the Mindfulness-Acceptance-Commitment (MAC) approach to peak performance, a model of human behavior based on mindfulness. Dayton is a psychologist and holds a doctorate in clinical psychology and a certificate in human performance/sport psychology from Rutgers University. He is President of Peak Psychology, Inc., a consulting firm that specializes in developing “peak” performance in traders.
The topic is his book Trade Mindfully: Achieve Your Optimum Trading Performance with Mindfulness and Cutting-Edge Psychology.
In this episode of Trend Following Radio we discuss:
Mindfulness, yoga, and a turnaround in a particularly depressed patient
Defining mindfulness
How Dayton went from a clinical psychologist to integrating money, markets, trading, and investing into his work
The importance of a trading process
Looking at the lessons and research of Daniel Kahneman
The endowment effect
Price action as a heuristic
The importance of an exit strategy
Why mindfulness is the most important skill a trader can develop
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My guest today is Brian Proctor, an original TurtleTrader trained by Richard Dennis and Bill Eckhardt and today is a Managing Director at EMC Capital. He began his futures career in 1982, with experience at both the Chicago Mercantile Exchange and Chicago Board of Trade. Proctor was a participant in the renowned Turtle Program, and managed all trading operations at C&D Commodities through 2000.
The topic is Trend Following.
In this episode of Trend Following Radio we discuss:
Proctor’s first trading moments and the Turtle program
Proctor’s view on Liz Cheval, what she brought to his firm, and why she’s still an integral part of EMC today
How trend following strategies have continued to excel over the years
Diversification and the Swiss franc
Black swans and how the impossible can and does happen
Bill Eckhardt’s influence
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My guest today is Douglas Emlen, a professor at the University of Montana. He is the recipient of the Presidential Early Career Award in Science and Engineering from the Office of Science and Technology Policy at the White House. He has also earned multiple research awards from the National Science Foundation, including their five-year CAREER award.
The topic is his book Animal Weapons: The Evolution of Battle.
In this episode of Trend Following Radio we discuss:
Taking our lessons from animals
The connection with human and animal arms races
International hacking
Comparing the fiddler crap to US and USSR bombers during the cold war
Defining evolutionary biology
How an arms race can run its course via the example of the sabertooth tiger
The arms race in the trading world
How the cuttlefish has found its way around the “alpha” system
Finding “workarounds” when the deck is stacked against you
War games and detente
Why predictability in weapons is important
One-on-one showdowns
The importance of being nimble
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My guest today is Nigol Koulajian, the Founder and Chief Investment Officer of Quest Partners LLC. He has been designing and trading short-term and long-term technical systems for over 22 years.
The topic is Trend Following.
In this episode of Trend Following Radio we discuss:
Trend following performance in 2014
Volatility vs. skew
Why having a good Sharpe Ratio is not the be-all-end-all
The notion that alpha in the CTA world is not a result of skill
Correlation between tail risk and the Sharpe Ratio
Central bank action and the Swiss Franc
Why trend following may not be as good in equity market corrections now as it has been in the past
Why trend following is not about the super-complicated mathematics
Getting outsiders to understand drawdowns
Emotional intelligence vs. intellectual intelligence
Media bias against trend following
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My guest today is Terrance Odean, the Rudd Family Foundation Professor and Chair of the Finance Group at the Haas School of Business, University of California, Berkeley. Odean has extensively researched into the empirical data on active trading. He is very well-known for his work in behavioral finance and is once of the early pioneers.
The topic is his extensive research into the empirical data on active trading.
In this episode of Trend Following Radio we discuss:
Odean describes his work
How Odean started his work looking at individual broker statements
The disposition effect
How Odean was able to get individual investor data when he was starting out
Looking at early thinkers in the arena of behavioral finance
Why people buy low and sell high
Why statistics are one of the best ways to understand what’s going on in the market
The difference between male and female investors
Why overconfidence hurts investors
Attention and how we make decisions
Why a simple heuristic from Seinfeld could be the best way for most investors
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My guest today is Robert Seawright, the Chief Investment & Information Officer for Madison Avenue Securities, a boutique broker-dealer and investment advisory firm headquartered in San Diego, California. Seawright is also a columnist for Research magazine, a Contributing Editor at Portfolioist as well as a contributor to the Financial Times, The Big Picture, The Wall Street Journal’s MarketWatch, Pragmatic Capitalism, and ThinkAdvisor.
The topic is his blog A New Kind Of Investment Outlook.
In this episode of Trend Following Radio we discuss:
How Seawright was able to put together this blog piece
Perfection and prediction
Bias blindness
Volatility vs. risk
Separating your politics from your investing
Financial media as entertainment
Whether Seawright encountered any pushback after putting out his article
Letting go of the high leverage idea
Why the more we trade
The worse we do
Nobel laureate David Baltimore
Adversarial collaboration
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