Ep. 46: Ralph Vince Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
Michael Covel
4.6 • 732 Ratings
🗓️ 16 August 2012
⏱️ 58 minutes
🧾️ Download transcript
Summary
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
Jump in!
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I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.
To start? I'd like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/
You can watch a free video here: https://www.trendfollowing.com/video/
Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast
My social media platforms:
Twitter: @covel
Facebook: @trendfollowing
LinkedIn: @covel
Instagram: @mikecovel
Hope you enjoy my never-ending podcast conversation!
Transcript
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| 0:00.0 | This is Trend Following Radio, where great thinking comes alive. |
| 0:10.9 | Nobel Prize winners, legendary traders, bestselling authors, and the pros that know what drive us irrational human beings. |
| 0:21.2 | I am your host, Michael Coval. |
| 0:24.0 | Not filtered, raw, honest. |
| 0:27.3 | That's my passion. |
| 0:33.3 | So today on the show I have Ralph Vents, |
| 0:36.0 | and I think for those folks that have done their homework |
| 0:39.3 | and done some reading about trading systems and specifically the issue of how much, |
| 0:46.9 | like how much to bet, the optimal amount to bet, you can't not help but have seen Ralph's |
| 0:52.7 | works over the years. I'm just going to read a few |
| 0:54.5 | of his book titles and just I'm sure some people are going to recognize some of these. |
| 0:58.0 | The new money management, the handbook of portfolio mathematics, the leveraged space trading model |
| 1:03.2 | portfolio management formulas, the mathematics of money management, risk opportunity analysis. |
| 1:10.5 | I'll make sure we get a link to those on the website |
| 1:12.8 | and everything and we'll go over them at the end so everybody can take a look at them. |
| 1:18.0 | But anyways, Ralph, thanks for joining me today. |
| 1:20.5 | Thanks, Michael. |
| 1:21.7 | So let's jump in with something easy because some of your works, I think, for newbies, are going to require |
| 1:31.9 | a little bit of digestion. |
| 1:33.6 | They won't be able to kind of just, they're going to have to do a little homework after our |
| 1:36.8 | conversation. |
| 1:37.9 | But let me jump into you in general. |
... |
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