Category: Trend Following

Feedback in:

Hi Michael, I’m very interested in the Turtle system, but I’m a bit confused. Because on the Internet it is said in many places (e.g. on Wikipedia) that the system no longer works today: If anything, it needs to be adjusted. In back tests of the last 20 years, it usually only achieves losses and the drawbacks are gigantic. Are they all jealous? Or did you really adapt the system so that the original rules no longer apply? I would appreciate a clarifying answer.

Best regards
Bernd J

Turtle trading is trend following. Trend following works. Read my TurtleTrader and Trend Following books here.

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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.

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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.

Feedback in:

Mike,

Your systems are marketed primarily for the big guys and the returns and drawdowns are superior to major indices. This is achieved by controlling risk and the system inherently produces above average rewards.

What kind of returns will the system produce for a slightly higher risk tolerance?

I am not looking for superior returns but to earn a living off trading. So if I want to average $1000 a day and am willing to take extra risk, what kind of capital will I need to start with?

Ideally, I’d like to fund an account, withdraw 5k a week and still let the account grow.

Regards,
[Name]

1. My systems are marketed primarily to regular traders — individuals. Those are my clients.

2. Risk and reward are tied at the hip. Risk more? You can make more, but with steeper drawdowns. It’s math.

3. Read: www.trendfollowing.com/capital.

4. Anyone who promises you that you can make a consistent set amount per day, i.e. $1000, $10,000, etc. is either a liar or a criminal or both. Guaranteed.

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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

My guest today is Larry Hite, a hedge fund manager who is credited as one of the forefathers of system trading. He co-founded Mint Investments in 1981, which by 1990, had become the largest commodity trading advisor in the world in terms of assets under management. After forming a partnership with the Man Group in the same year, he pioneered the principal protected fund concept, leading to a number of successful structured products and financial engineering innovations.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

• The goal of making money
• Strategies for investing
• How does trend following work?
• What causes inflation?

Mentions & Resources:

• Larry Hite
• The Rule: How I Beat the Odds in the Markets and in Life and How You Can Too
• Jesse Livermore
• Tom Basso
• Paul Mulvaney
• Paul Tudor Jones
• Merrill Lynch
• Peter Borish
• Shaquille O’Neal

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Listen on Stitcher.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

Jump in!

Feedback in:

[My challenges are] Knowing when to enter a trade and when to exit. Predicting trends.

Scott H.

You need:

• Exact rules for selecting your tracking portfolio.
• Exact rules for entering your trades at the right time.
• Exact rules for exiting your trades with a loss.
• Exact rules for exiting your trades with a profit.
• Exact rules for how much money to bet on each trade.

Prediction is not the goal.

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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:

Hi Michael, I’ve been working on a trend following CTA, but we use discretion to turn on systems via seasonal analysis and then let the systems take over 100%. Do you think the use of that discretion on the seasonal systems is dumb?

Thanks. Best, Drew

You don’t describe a trend following method. Seasonal/discretion will never be trend following. Do you want the trend following performance benefit? That’s the issue.

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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 Darvas with Michael Covel on Trend Following Radio.

Listen to this episode:

• Listen to this podcast on iTunes. (Please leave a rating!)
• Listen on Spotify.
• Listen on Stitcher.
• Libysn RSS.
• Download as MP3 by right-clicking here and choosing “save as.”
• Free Video.

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

Feedback in:

Hi Michael,

I just wanted to write an email to thank you for everything you have put out there in the public regarding Trend Following through your books and podcast. I have been ‘investing’ for about 12 years now but only recently really started to question the conventional buy and hold philosophy that is out there. It is something that really shouldn’t have taken me this long to realise as I have had a number of hints along my investing journey. I remember when I first started investing, I would rank the stocks in the Dow 30, based on their PE ratio, dividend yield and Cape ratio. I would create a table to rank these, not against each other but against their own average ratios to see which ones were overvalued. It was amazing to me that the most overvalued stocks in my table would be the ones to outperform in the coming year and not the most undervalued ones that I would buy a basket of in the thoughts that the market would eventually appreciate their undervaluation and they would go on to outperform. It is only recently that I understand what was really happening to these stocks that I tracked data on over 10 years ago and that the so called overvalued ones continued to show momentum and outperform. I used to look at traders as gamblers and not investors at all. Now I am happy to call myself a trader and after reading your Book Trend following and listening to literally hundreds of your podcasts, I credit you with opening my eyes to a new way to look at growing my wealth. Instead of blindly hoping that stocks I invest in will go up and not down, now I have a get exit strategy before I enter a trade as well as not question how long a winner can run. Also, I no longer only trade stocks but anything that shows a trend worth getting into. Thanks again for all your info on Trend Following.

Thanks,
John G.

Welcome!

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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.