SI148: The Importance of Capturing A Few Large Trends ft. Jerry Parker
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 712 Ratings
🗓️ 11 July 2021
⏱️ 69 minutes
🧾️ Download transcript
Summary
Jerry Parker returns today to discuss why margin perhaps isn’t as important as people perceive it to be, the resurgence of ‘classical’ Trend Following, the importance of having a low Sharpe ratio, an update on Jerry’s Bitcoin positioning, the drawbacks of trading a single, longer-term timeframe, how European CTAs successfully compete with American CTAs, the best methods for measuring open risk, and why capturing the fewer large trends may be more important than the many small trends.
Also check out my interview with Turtle Trading legendary mentor Richard Dennis here.
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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
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Episode TimeStamps:
00:00 - Intro
01:28 - A huge thank you to our listeners for leaving 5-star reviews in iTunes
02:02 - Macro recap from Niels
12:07 - Q1; Omar: Why isn’t Trend Following more popular as a strategy?
31:37 - Q2 & Q3, Q4; John: What percentage of margin to equity was Jerry using during his Turtle Trading days? What kind of margin levels does Jerry use today at Chesapeake? How do you define and differentiate between ‘profit factors’?
40:01 - Q5; Mark: What look back periods do you tend to prefer?
47:27 - Deep and fast drawdowns versus longer-lasting, shallower drawdowns
50:48 - Adjusting your trading universe by recent performance
58:11 - How newer money managers can differentiate themselves from their competitors
01:01:04 - Diversification versus concentration
01:05:07 - Benchmark performance update
Copyright © 2025 – CMC AG – All Rights Reserved
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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
Transcript
Click on a timestamp to play from that location
| 0:00.0 | You're about to join Jerry Parker, Maritz Siebert, and Neil's 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. |
| 0:15.2 | Welcome to the Systematic Investor Podcast series. |
| 0:19.2 | Welcome and welcome back to this week's edition of the podcast series. |
| 0:26.6 | Welcome and welcome back to this week's edition of the systematic investor series with Jerry Parker and me, Niels Karstablastin, where each week we take the pulse of the global |
| 0:31.3 | market through the lens of a rules-based investor. |
| 0:34.7 | For those of you who are regular listeners, our conversations are intended for you to learn |
| 0:39.0 | and grow as a rules-based investor. And if you are new to the show, we hope that today's episode |
| 0:43.7 | will trigger your curiosity to check out the back catalog and listen to past episodes that you may |
| 0:49.3 | have missed, like last week's episode with Moritz, where we had so many great questions from our community |
| 0:55.5 | and where we also went through the recent massive up and downtrend in lumber |
| 1:01.0 | and how a trend following system like Morris has handled this kind of market action. |
| 1:07.4 | Jerry, very excited to be back with you this week. |
| 1:10.3 | How are you doing? How are things where you are in Florida? |
| 1:13.0 | Things are great here in Tampa, Florida. Our hockey team just won three-second straight Stanley Cup |
| 1:18.1 | championship. So we're very happy about that and we're excited for our boat parade on Monday to celebrate. |
| 1:25.7 | That sounds very nice indeed. |
| 1:28.6 | Now, before we dive into this week's short market wrap, I just wanted to give a quick shout |
| 1:35.5 | out to Steveo, Henry and Mark, whom I saw had left a really nice rating and review this |
| 1:41.6 | week in iTunes. |
| 1:42.7 | We're so grateful for these because they motivate us |
... |
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