The best VCs funds truly do exemplify the Babe Ruth effect: they swing hard, and either hit big or miss big. You can’t have grand slams without a lot of strikeouts.
Listener: Great story about the smarmy motherfucker with a popular hipster podcast. That had to be [Name]. Love the pod and I love following the trend.
[Name] makes interesting observations and is definitely an intelligent guy. He is a charlatanical self-promoter, however, and after reading his books it is clear to me that he would sell anything to make a buck and I question his ethics and moral compass.
Keep up the great work!
Covel: Not [Name]! He was on my show.
Listener: I was wrong! Well, the culprit must not be on my radar. Love your books!
Michael: Episode 350: Great interviews. One thing mentioned in that was Dave Druz told Melissinos that the most important item was portfolio construction, i.e. selecting instruments that have tendency to trend, and trend often enough to produce meaningful juice. I agree with that. Any material you have from other people that to deeper into portfolio selection within trend following context, please send it my way. Also, I just heard that in 351 that you are heading to China. See if you could include voice clips from your talk over there and make it an episode.
Keep up the good work.
Thanks,
[Name]
Thanks. More insights on portfolios here, here and here.
Please enjoy my monologue Logical Fallacies and Zero Sum with Michael Covel on Trend Following Radio. This episode may also include great outside guests from my archive.
Listen to this episode:
Listen to this podcast on iTunes. (Please leave a rating!)
I want to thank you for writing your books. They got me to approach the market in a new way. I have dived head long into algo/quant trading through trend trading. As long as you trust the system and follow through you will succeed. I think that the simpler systems are better than complex. Also the markets are noisier than they were 20 years ago which make trend trading harder, but it is still the most successful method for trading. Thanks again Michael.
My guests today are Michael Melissinos and Glenn Graham.
Michael has assumed research and trading responsibilities. He also works on his emotional and mental game with the help of his local Trading Tribe. Tribe helps him maintain discipline through tough performance periods, remain inventive and push the envelope of improving the firm’s investing and education strategy. He previously held positions at Rothstein Kass, Bear Stearns and J.P. Morgan.
Glenn’s firm is Golden Point Capital. Graham has had extensive experience in quantitative trading strategy development in the futures space. He holds the designation of Chartered Alternative Investment Analyst (CAIA), a designation focusing on the alternative asset classes.
The topic is Trend Following.
In this episode of Trend Following Radio we discuss:
Covel and Melissinos discuss Melissinos’ career and beginnings; his history with Bear Sterns; Melissinos’ introduction to trend following; “find trends, align with trends, and manage risks”; the similarities between crude oil, copper, sugar, the Euro, and wheat; and trading based purely on price.
Graham and Covel discuss Graham’s early trading track record; niche markets and hedging; Graham’s early trading experiences and his history at a high frequency trading firm; early influences in trend style trading; the parallels between trading and backgammon; the importance of the size of your winners over winning percentage; and style drift.
Listen to this episode:
Listen to this podcast on iTunes. (Please leave a rating!)
My guest today is Donald MacKenzie, a Professor of Sociology at the University of Edinburgh, Scotland. He works on the sociology of markets, focusing on automated trading, the use of mathematical models, and the evaluation and trading of bonds. MacKenzie has worked in the past on topics ranging from the sociology of nuclear weapons to the meaning of proof in the context of computer systems critical to safety or security.
The topic is his book An Engine, Not A Camera: How Financial Models Shape Markets.
In this episode of Trend Following Radio we discuss:
Economic models
Self-fulfilling prophecies and economics
Our beliefs and the social world
The definition of performativity
Mackenzie’s analysis and study of the Black-Scholes model
Long Term Capital Management
Reflexivity
The intellectual gap between purveyors of the efficient market hypothesis vs. behavioral economists as reflected in the 2014 Nobel Prize winners
The arms race in high frequency trading.
Listen to this episode:
Listen to this podcast on iTunes. (Please leave a rating!)
