Category: Trend Following

Feedback in:

The biggest challenge in my trading has been protecting the money that I have made in my product. I’m a fifth generation cattle rancher (we buy and sell cattle with the theory of buying what’s discounted and adding value to are product) my family has been blessed over the years and we have done well in the cattle business, but with doing well that means TRYING to protect what we have. I’m surrounded by uncertainty. Weather, volatile markets, animals, regulations and so on. I’ve read three of your books and I really can correlate with what your saying about quantitative decision making and let price dictate decisions. In the cattle business if it doesn’t add up mathematically then we don’t take the risk of pursuing that trade, so why do I look at risk protection differently? I always felt deep down there was a better way to manage risk. Trying to protect what we have made (with the cattle) to only pay huge margin calls and miss out on big trends. I’m not the greatest with computers and right now and that feels also like a huge challenge, but I’m confident that can be learned. I’m reading and absorbing like crazy through your podcast. Longhand I have been using moving averages to find volatility in the feeder and fat cattle markets, another big mental challenge right now is the computer side. I’m not a computer guy, but I love the idea of checking my computer before or after trading that day and having my system tell me what to do, not some talking head that is prolly being paid to say what he or she is saying. So to wrap up. My biggest challenges are protecting large sums of money with risk protection and using tech to make better quantified decisions.

[Name] Land & Cattle

I can help. A good start.

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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:

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• Frequently Asked Questions
• Performance
• Research
• Markets to Trade
• Crisis Times
• Trading Technology
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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.

Subscribe to Trend Following Radio on iTunes

Please enjoy my monologue Stop Looking for Efficiency with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.

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• Free Video.

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

Feedback in:

Dear Michael,

This is a question with regards to different timing of funds/allocation coming into a trend following trading account. For example you are running a moving average cross over system and is already in a LONG position due to the favourable cross over condition that indicates an uptrend.

i.e. Strategy: BUY when EMA 20 crosses EMA 50 towards the upside and SELL when it crosses back down.

The question here is what do you do when you receive extra allocation/funds to the trading account in between the signals generated? Do you immediately add on the extra allocation on the current trade or new funds will only be allocated when the next signal is given?

This question is based on the premise that most markets only trend 1/3 of the time and if we always wait till the next signal before allocating the new funds, the opportunity cost seems pretty high. Do advise what does a trend following fund manager do in this case? (trying to remove discretionary decision to the maximum and hence the question)

Much appreciated.

Yours sincerely,
Royal (student of your trend following theories)

You have all of my Flagship content in front of you? Or you are in one of my books? I have a very precise way of teaching a system. I don’t teach by correcting without first starting with a solid foundation.

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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 Scott Kupor, the managing partner of Andreessen Horowitz. He has overseen the firm’s rapid growth to one hundred fifty employees and more than $7 billion in assets under management.

The topic is his book Secrets of Sand Hill Road: Venture Capital and How to Get It.

In this episode of Trend Following Radio we discuss:

• What are venture capitalists saying about your startup behind closed doors? And what can you do to influence that conversation?
• Why most VCs typically invest in only one startup in a given business category?
• Why the skill you need most when raising venture capital is the ability to tell a compelling story?
• How to handle a “down round,” when startups have to raise funds at a lower valuation than in the previous round?
• What to do when VCs get too entangled in the day-to-day operations of the business?
• Why you need to build relationships with potential acquirers long before you decide to sell?

Mentions & Resources:

• Scott Kupor
• Scott Kupor Twitter

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.
• Free Video.

Jump in!

Feedback in:

Hi Michael,

Saw you on [name]. Enjoyed the talk and really surprised to see you wrote The Complete TurtleTrader…just ordered the book. I have heard of it many people say Richard Dennis’s system is no longer working. I don’t know if it is or not. I don’t know the rules.

My biggest challenge with trading: Lack of belief that trading can be the vehicle to make me $50M along with lack of focus on 1 system.

I began trading FX and it was sorta nailed into my head that making 20% returns/year was incredible..well how was I supposed to get rich off a $10K account on 20%/year? Then I found [name] and it looks like in the equity space there are opportunities every month to make 20%+ returns with a small account.

I am now ‘all in’ on trading. I see that I can become rich (my goal is $50M in my life) if I focus but the belief still is not 100% that I can actually make that figure. (especially since after ~1 year of trading I’m still jumping around too much and have not made any substantial profits in trading)

In your talk with [name] you ask ‘how can you find trading exciting’? I do personally find trading exciting because of the instant feedback and the $ representation of each tick – behind each tick of the market there can be millions. I think all of us have a deeper reward system when it comes to trading – many people say its money but I believe there is something a lot deeper (like prestige, being correct (you laugh at that but its a deep seated ego need), excitement)

Best,
Michael P.

Thanks! Lots to read. Jump in.

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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 Mike,

I thought I’d share my trend following journey to date.

It’s been nearly 9 months since I originally contacted you. At that point I had read half of your book Trend Following and I was blown away by the research and the attention to detail. I had a feeling that maybe you could help me but in all honesty I wasn’t sure how. By the time I found you I had been struggling for 4 years and getting nowhere. I was frustrated, I knew that what I was doing was not right and the knowledge I had gained studying for a Bachelor of Commerce was great in theory, useful in earning a salary but totally useless in trading world.

You responded to my initial email with a few simple words, “Stay in my world for a while. I can help. Mike”. I had no idea where this was going to go but I had nothing to lose if things didn’t work out and everything to gain if they did. I signed up for your Flagship program. My simple plan was to stick with it for 18 months and finish up being consistently profitable in the markets. I really had no idea what I was truly buying and the journey that I was about to embark on.

I was happily reading your material, doing the work, listening to your podcasts and things began to change; so slowly at first that I hardly even noticed and then after listening to one of your podcasts something changed, it wasn’t the specific content of that podcast (by the way they’re all interesting and thought provoking) something just clicked; all I could hear was you saying, “Trust and verify” and everything changed.

I realised it wasn’t about whether I was trading commodities, ETFs, stocks or pink polka dotted umbrellas, it was all about price, liquidity and having a system with a positive expectancy, a suitable return to draw down ratio for me and just consistently following it. It’s not about the charts, candlesticks, Fibonacci levels etc etc etc , it’s about making money and managing risk.

Now I’m working on being a trend follower; it’s spilled over from the markets to my life. I do more of what works less of what doesn’t and just keep going. Your work has opened my mind to so many ideas which has brought about change to not only my life but to that of my three children. I am not the typical mum that says study hard, get good grades and get a job; they’re now hearing a different message, to look at what they can learn from a job not the dollars it pays, to develop a side hustle, invest, look at the reward to risk, don’t risk too much and expect to fail many,many times happily. It’s not about the ratio of wins to losses it about the size of each, trend following 101.

I can’t thank you enough for the impact you have had on my life and my children’s lives. I think back to my mindset a year ago and I can’t believe that was me. Trend following will always be a part of my life and I am truly grateful for the work you do and the way it has changed me. I hoped to become a consistently profitable trader at best what I got was a different way of looking at the world.

With my sincerest thanks,
Julie

Thanks for those kind words!

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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:

Michael:

Enjoying your book. Read some info on the internet that trend following has lost some luster (performance) over the last several years. Have you seen compression of returns? Maybe your book has become too popular…

Thank you.

Wrong conclusions. Someone every few years pushes this angle…

Review:

trendfollowing.com/resources/
trendfollowing.com/charts/
trendfollowing.com/markets/
trendfollowing.com/events/

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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.