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Top Traders Unplugged

BO50: Why Trend Following (Still) Works

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8670 Ratings

🗓️ 3 April 2020

⏱️ 4 minutes

🧾️ Download transcript

Summary

We explain why Trend Following will continue to perform over time.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

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Transcript

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0:00.0

What my system does is it combines, it takes technical, technical methodology, shall we say, or ideas that are traditionally based upon subjective judgments.

0:17.0

And it implements those in such a way that they're mechanical or automatic.

0:23.1

And that, I think, is the advantage.

0:24.9

So, of course, the system itself will do things that to a technician would look irrational at times.

0:33.9

But that's the tradeoff.

0:35.5

On the other hand, what the system does is the system provides

0:38.1

discipline and it eliminates the possibility of second-guessing which of course is the is the bane of the

0:44.9

technical technical analyst so the advantage to this to get back and this of course goes back

0:51.2

to the original days when I got into this business, was that, and I think

0:56.5

anyone who's, anyone who was one of the early systems traders would confirm this, is that

1:01.5

when we first got started technical trading, it was like shooting fish in a barrel, because

1:06.4

there were very few people doing it. Most of the people who were trading commodities

1:11.7

were small investors or people trading by the seat of their pants.

1:16.9

And so you had an incredible advantage,

1:19.1

just by just the discipline that a system provided

1:23.2

was an incredible advantage over most of the traders

1:27.3

that were out there. So it turned out to be very easy. It was an incredible advantage over most of the traders that were out there.

1:29.4

So it turned out to be very easy. It was very easy. I mean, almost any system would work.

1:33.4

I mean, Don Chin's, you know, moving average crossover.

1:36.1

I knew a guy who just had a system based upon a moving average turning.

1:41.2

The moving average turned up, he bought, and it turned down he sold.

1:43.7

So almost any system worked better than what most people were doing,

...

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