SI140: Down Markets Are Often a Treasure to Trend Followers ft. Jerry Parker

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, News, Business News, Investing

4.8 • 712 Ratings

🗓️ 16 May 2021

⏱️ 72 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Jerry Parker joins us today to discuss the benefits of prioritising price over other factors, navigating a high-inflationary environment, how bad markets for average investors can often be great for Trend Followers, how public awareness of a market uptrend can often precede large price drops, the potential drawbacks of trying to standout too much as a money-manager, how classical Trend Following is an increasing rarity in the CTA space, the benefits of investing in Trend Following via a proven manager, the similarities between amateur golfers and traders, the point at which a trend has been ‘confirmed’, and conquering the fear of losses.

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

In this episode, we discuss:

Why you should prioritise price over any other form of data
How bad markets for the average investor is often lucrative for Trend Followers
How mainstream attention to market trends usually means they're about to end
Why money managers shouldn't always try to stand out too much
The increasing rarity of classical Trend Following CTAs
How to embrace the mentality of cutting losses

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IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

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Episode TimeStamps:

00:00 - Intro

02:55 - Macro recap from Niels

06:07 - Weekly review of returns

13:34 - Stanley Druckenmiller’s recent interview criticising the Federal Reserve

16:17 - Q1 & Q2; Shibojet: What are your thoughts about a dynamic trading system that focuses more on what’s working over any given time-period, rather than a static trading system with rigid criteria? Why don’t Trend Followers trade cash equities?

39:32 - Q3; Aldo: Is it worth trading a small account using micro-futures? What are your thoughts on pyramiding into positions?

50:51 - Conquering the fear of losses

53:45 - How many markets should we trade?

01:06:58 - Benchmark performance update

01:07:56 - CBOE announce new Bond futures

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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

Disclaimer

Transcript

Click on a timestamp to play from that location

0:00.0	You're about to join Jerry Parker, Maritz Siebert, and Nealz Kostrup Larson on their
0:06.3	raw and honest journey into the world of systematic investing and learn about the most dependable
0:11.6	and consistent yet often overlooked investment strategy. Welcome to the Systematic Investor
0:16.8	podcast series.
0:26.9	Welcome and welcome back to this week's edition of the Systematic Investor series with Jerry Parker and me, Niels Kastrolaassen, where each week we take the pulse of the global
0:31.2	market through the lens of a rules-based investor.
0:33.9	For those of you who are regular listeners, our conversations are intended for you to learn and grow as rules-based investors.
0:40.3	And if you're new to the show, we hope that today's episode will trigger your curiosity to check out the back catalog and listen to the past episodes that you may have missed, like last week's episode with Moritz, where we discussed the annual general meeting of Berkshire Hathaway and a lot of crypto and
0:55.6	defy related stuff. So if you miss that episode, I invite you to go back and check it out.
1:02.0	Jerry, always great to be back with you this week. How are things where you are in sunny Florida,
1:08.3	I hope? Oh, yes, very sunny. Very nice here.
1:10.9	It's good to see you again and be back on the podcast.
1:15.0	So I've enjoyed listening.
1:17.0	It's the first thing I do.
1:18.1	As soon as you post them, I'm out there listening to Moritz and Rob and Mark and you
1:25.2	and writing down all the ways I disagree. No, but seriously, it's good to be back.
1:30.0	Yeah, no, it's great to have you here. Speaking of Florida, speaking of Miami, I couldn't help,
1:34.9	and I don't know if you're aware of this. Obviously, my understanding is that Florida, in particular,
1:39.1	Miami, it's things are back to normal and booming and lots of stuff going on. But did you also know that
1:46.0	apparently the whole Bitcoin community is coming to Miami in only a couple of weeks?
1:51.3	I look forward to seeing Moretz then. I didn't know he was coming to Miami. But no, I won't
1:55.9	be there either. You have these Bitcoin people like myself and others who trade the Bitcoin futures,
	...

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