This is Trend Following Radio, where great thinking comes alive.

Nobel Prize winners, legendary traders, best-selling authors, and the pros that know what drive us irrational human beings.

I am your host, Michael Covell, not filtered, raw, honest.

That's my passion.

Let me talk about the idea of resilience.

Resilience. Resilience, resilience.

I'm going to read two quick paragraphs here.

Most approaches to resilience resemble traditional risk management,

identify a set of risks, calculate the

probabilities, and do what you can to mitigate those risks. Those techniques don't account

for the unexpected, the so-called black swans, and they don't acknowledge the rolling,

compounding effects that disruptions can have in our hyperfast and hyper-connected

world. We get locked into economic and technological patterns that constrain us in terms of our

ability to evolve and cope with new challenges. What we really need is to operate with variability

as the norm. To operate with variability as the norm.

Well, to operate with variability as the norm is to be a trend following trader, is to be a systematic quant trader, to be a managed futurist trader, whatever you want to call yourself,

but the type of trend following trader that I define in my books,

that's about operating with variability as the norm.

Now, I don't want to sound too bookish or too academic. Variability is the norm.

That means there's going to be volatility.

That means you can't make the volatility go away.

And if you try and make the volatility go away,

...