Subscribe now and watch my free trend following VIDEO.

Tag: Trend Following

Ep. 49: David Cheval Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
David Cheval
David Cheval

My guest today is David Cheval. Cheval was an inside witness to Richard Dennis and Bill Eckhardt’s famed Turtle experiment. Through the involvement of his former wife, famed original TurtleTrader Liz Cheval, David Cheval’s history and background for the Turtle story comes from a unique vantage point.

The topic is Turtle Trading.

In this episode of Trend Following Radio we discuss:

  • Events surrounding the Turtle experiment, including his own interesting part in alerting his former wife to the opportunity (he is still an investor in her firm)
  • Cheval’s progression from a runner on the Chicago pits, to the formation of his CPO (Dearborn Capital Management), to his career in law today
  • The presence of Richard Dennis on the Chicago Board of Trade in the years prior to the Turtle experiment
  • Some of the lessons that can be gleaned from some of the most successful Turtles
  • The difference between volatility and risk
  • Why basic trend following philosophies are timeless

Listen to this episode:

Jump in!

Ep. 48: Michael Gibbons Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel

 

Michael Gibbons
Michael Gibbons

My guest today is Michael Gibbons, a market timer (otherwise known as a trend following trader) who runs a firm called Gibbons Trading. Gibbons started as an economics major and quickly realized that much of what he was taught in academia didn’t add up. He has been trading since 1971, and was one of the first to discover what is now known as stock index arbitrage. He was one of the first to use computerized trading and currently provides his proprietary research primarily to large traders and hedge funds.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • How Gibbons started in the markets
  • The fallacies of buy & hold and fundamental analysis
  • Trading prices apart from everything else (and how this is close to playing the market like a video game, i.e. pong)
  • The problem of when the media is simply “making things up”
  • How trading can be primarily psychological
  • The problems of the efficient market hypothesis (EMH) and academia
  • The benefits of having a trend following strategy during chaotic times; the danger of gurus
  • Separating your ego from your trading

Listen to this episode:

Jump in!

Ep. 46: Ralph Vince Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Ralph Vince
Ralph Vince

My guest today is Ralph Vince. Vince is by profession a computer programmer writing analytical programs for funds, large traders and professional gamblers. He is the author of five books on investing in his field of expertise, portfolio management and portfolio/trade optimization.

The topic is trading.

In this episode of Trend Following Radio we discuss:

  • Optimal bet sizes
  • Whether Ed Thorp’s work and the Kelly criteria had any effect on Vince’s work
  • The importance of knowing the optimal spot depending on your criteria
  • Why maximizing profits can result in a large drawdown – and why you should be happy about that
  • If diversification really does give you a free lunch
  • The importance of learning the wrong approach

Listen to this episode:

Jump in!

Ep. 45: Howard Getson Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Howard Getson
Howard Getson

My guest today is Howard Getson, an entrepreneur and president & CEO of Capitalogix. Getson is an associate of Stendahl. Getson has a degree in psychology and philosophy from Duke University, an MBA and law degree from Northwestern, and has practiced corporate law. Getson is running a hedge fund today as well as a quant research shop, and he’s in the business of systematically finding edges through all sorts of different approaches – not only trend following. Getson started his first business in the sixth grade, and he has always had the mind of an entrepreneur.

The topic is entrepreneurship.

In this episode of Trend Following Radio we discuss:

  • Getson’s legal background and how being a practicing corporate attorney influenced his trading and other business practices – as well as how a diverse background can help
  • “E-gene”, and how entrepreneurism is at the core of what both Getson and Covel practice
  • How hunches can be dangerous
  • Turning your hobby into your business
  • Recognizing patterns
  • The “three levels of mastery” – cognitive, emotional, and physical
  • How minimum standards can define your life
  • How systematic trading can define your minimum standards
  • Controlling emotions through automation
  • Importance of travel with a focus on Southeast Asia in particular and why this area of the world is so important to keep an eye on

Listen to this episode:

Jump in!

Trend Following Philosophy: Dedication and Belief

Posted on by Michael Covel

Feedback in:

Hi Michael,

Let me start by saying thanks for taking trend following to the masses. The podcasts are excellent. Listening to how successful system traders started out, most of them quite modestly, reinforces my discipline and “belief” (Van Tharp) in trend following. I’ve been committed to systems trading for about a year now. I had researched Trend Following online and ultimately ordered Trend Following and The Little Book. After reading those I never looked back.

I’m definitely not high net worth, so the best I can do to support your endeavor is buy your books (done, done, done & done) and watch Broke (also done). I also left a good podcast review on iTunes a while back. I like your no bullshit delivery. Saying stuff like “hey guys, buy my books already” is so refreshing (or genius marketing). I got a kick out of your “amazon purchase” challenge in a recent podcast. Ironically, I had ordered Commandments and TurtleTrader only a few days before which I look forward to reading.

I also promote your stuff to anyone who will listen but I must admit that finding an audience is not that easy. Example, I loaned Trend Following (my bad, should have gifted) to a friend who is a computer programmer and talks about investing a lot, thinking it would click for him. I was disappointed when he returned the book unread. I was also hoping he might work with me to tinker with system development and testing. So much for that.

I’m currently trading a group of fairly liquid ETFs listed on the TSX offered by Horizons. They have interesting leveraged products with exposure to basic commodities, sectors, and indices. Both directional and inverse which allow you to go short without getting stuck not being able to borrow shares. My system is very basic and I believe fairly robust. I’ve back tested it manually, incorporating proper position sizing across all the ETFs that I track (major work) and it showed positive returns.

I love that the trading component of my approach only requires 20 minutes a day adjusting orders and stops. This really fits my personality, mindset and schedule since I have a day job. I have yet to be profitable (equity curve attached), but I think the fact that I’m sticking with it is an indication that I get it. My diversification needs improvement so I’m considering Futures trading to get away from high-ish correlation of the ETFs I track. First, I need to get some trades (and equity) under my belt.

Anyway, keep the podcasts coming, but please find time to write new chapters to your “bible“.

Discovering trend following is reward enough and I just wanted to say thanks.

Cheers! Georges

Thanks!

More on the philosophy of Trend Following.

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.

Rickson Gracie, Malcolm Gladwell, The Turtles (Band) and the Pixies All to Make Trend Following Connections

Posted on by Michael Covel

Episode #22 of my monologue series is live on the podcast–listen on iTunes. Also:

Do I get some props for bringing Rickson Gracie, Malcolm Gladwell, The Turtles (Band; their biggest hit) and the Pixies into the same episode?

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. 43: Van Tharp Interview with Michael Covel on Trend Following Radio

Posted on by Michael Covel
Van Tharp
Van Tharp

Van Tharp is on the podcast:

My guest today is Van Tharp. Tharp runs the Van Tharp Institute and is the author of four acclaimed books. He was also featured in Jack Schwager’s Market Wizard’s: Interviews with Great Traders. Van Tharp received his Ph.D. in psychology, is a certified Master Practitioner of Neuro Linguistic Programming (NLP), a Certified Master Time Line Therapist, a certified Modeler of NLP, and an Assistant Trainer of NLP. He has used his expertise in NLP to create the successful models of trading and investing upon which so much of his work is based. Tharp also was also considered for the original Turtle program with Richard Dennis and Bill Eckhardt.

The topic is trading psychology.

In this episode of Trend Following Radio we discuss:

  • Tharp’s psychological expertise to explain why trading psychology is so important to being a successful trader
  • Importance of happiness in relation to trading psychology
  • The influence of Tom Basso, Bill Eckhardt, and Ed Seykota (and his concept of “market’s money”)
  • The notion of self-sabotage

Listen to this episode:

Jump in!