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Category: Trend Following

Ep. 333: Gary Dayton Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Gary Dayton
Gary Dayton

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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The Hard Part About Surfing

Posted on by Michael Covel

Feedback in:

Hey Michael, Not sure if you caught Seth Godin’s most recent blog post, so I thought I’d pass it along:

Surfing, the conceptual kind, is more essential than ever, it’s not optional. And the hardest part of surfing, by far, is paddling out, not surfing in. Carrying the board, getting back into the water, paddling through the waves, waiting for the next set…it’s exhausting, and surfers spend far more time doing this than they do on the other part. Having the guts to surf is what change demands. And finding the stamina to paddle back out is a key part of surfing.

I thought it had many parallels to trend following. Enjoy!

[Name]

Thanks!

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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• Frequently Asked Questions
• Performance
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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.

Ep. 332: Brian Proctor Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel

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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Terrance Odean Podcast Feedback

Posted on by Michael Covel

Feedback in:

Dear Terry and Mike,

I just heard the interview the two of you did on Mike’s show, and I really enjoyed it. I’ve known Terry for many years not only because he was a guest on my show in 2011, but also because he was kind enough to endorse my recent book about chess and investing, Rich As A King: How the Wisdom of Chess Can Make You a Grandmaster of Investing. And I know Mike because we had a great conversation a little while back on his show when he interviewed both me and my co-author, Susan Polgar.

I wanted to write to the two of you to say thanks not only because I enjoyed the interview, but because one of the stories that came up reminded me of something that happened to me when I was young and I thought you would get a kick out of it.

When I was in high school and my two older brothers were at Princeton, we decided during winter break that we would use our new Apple computer to write a program to predict the stock market. We thought we were pretty clever and we stayed up late at night programming, watching Star Trek, and going out for midnight runs. We didn’t know how to access data easily in those days, so we went to the library and looked up on microfiche a year’s worth of daily closing values of the Dow Jones Industrial Average.

For weeks and weeks we toiled over our project until finally we figured out an algorithm that if we invested in a certain way, based on our historical review, we would have winning trades about 55% of the time. We realized that advantage, especially if leveraged using margin, could lead to billion-dollar success. Thrilled with our brilliance, we went to bed and dreamed about our future success. Two of us did at least. My oldest brother David, now a professor of aeronautical engineering and the guy who originally planned the mission to crash a satellite on the moon to detect water, stayed up for a few more hours.

Crawling through every line of our code, he eventually realized that we were suffering from information leak, including the next day’s market close in our predictions. So much for prophetic algorithms!

I enjoyed hearing Terry tell his story because it made me think of what happened to my brothers and me 30 years ago. And I love the way that Mike does the interviews because he really asks excellent questions and helps his guests shine.

Finally, Terry, I should thank you (as thousands of investment advisers should) for all the work that you have done because it has helped me guide my clients to handle their portfolios responsibly. I tell them things like, “There’s this professor out in California who did some fantastic research and based on his studies, Mr. Client, I don’t think you should try to trade your own account.”

All the best,
Doug

Thanks!

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.

Ep. 331: Douglas Emlen Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Douglas Emlen
Douglas Emlen

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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Hocus Pocus, Smoke and Mirrors Is Not Trend Following

Posted on by Michael Covel

Feedback in:

Very stimulating to hear [listen] an “original Turtle” still thrilled and verifying the TF he learned in 1983. Like Jerry Parker, as I read your books, validated in your course, I believed it “hook, line, and sinker.” The rest is hocus pocus, smoke and mirrors. Been there, done that.

Thanks,
[Name]

Thanks!

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.