SI173: ‘Trend Following + Nothing’ Part Two ft. Jerry, Moritz, Rob, Mark & Rich

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8 • 712 Ratings

🗓️ 2 January 2022

⏱️ 93 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today we continue our special Part 2 end-of-year episode featuring all co-hosts of the show, together at the same time, to discuss why you should be invested in numerous different markets, why more Trend Following firms should be trading single stocks, the optimum amount of systems to run at the same time, whether diversifying across markets or diversifying across systems is more important, some thoughts on positive skew, and defining outliers. We also review how 2021 went for each us, including our best and worst markets to trade, the lessons we learned, and the biggest surprises.

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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:

The reasons for trading different markets
Why Trend Following firms should trade single stocks
The optimum amount of systems to run at the same time
Diversification across markets versus across systems
Skewness
How to define outliers

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Episode TimeStamps:

00:00 - Intro

01:20 - Would you rather trade 100 markets with 1 system, using 10 different timeframes? or would you rather trade 50 markets, using 3 different systems, using 5 different timeframes?

08:33 - How much ‘positive skew’ do we need?

27:04 - Diversification as a means of risk control, versus as a method of finding outliers

36:14 - Defining outliers and some thoughts on the number of expected outliers per year

45:03 - Can be momentum traders be placed in the same category as Trend Followers?

48:13 - Should we care that bubbles exist, or just enjoy the profitable trends? Have the markets gotten any smarter over the years?

52:52 - How Trend Following and Systematic Investing narratives & terms have changed over the years

01:12:55 - A review of our best and worst markets to trade during 2021

01:16:10 - The lessons we learned from 2021, the biggest surprises, and our most regrettable decision from the year

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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
0:11.1	dependable and consistent yet often overlooked investment strategy.
0:15.1	Welcome to the Systematic Investor podcast series.
0:22.1	Welcome or welcome back to this week's edition of the Systematic Investor series
0:25.7	with Jerry Parker, Rob Carver, Mark Rissimpsinski, Richard Brennan,
0:30.5	Mord Sebert and I, Niels Kastor Larsen, where each week we take the pulse of the global
0:34.5	markets through the lens of a rules-based investor.
0:38.1	Today we're back with part two of our very special episode
0:41.1	where we are all together for one big conversation and debate.
0:45.1	As you know, this podcast series is all about voicing our differences
0:48.4	on the one topic that brings us together, namely systematic investing,
0:52.3	using the often overlooked but very robust strategy
0:55.0	of trend following.
0:56.5	We're recording on December 15th, and this conversation and what you're hearing right now
1:01.8	is the second part of this mega recording.
1:04.9	So if you miss part one, then make sure you go back and listen to that one first.
1:10.2	Okay, so we got through the first few rounds in last week's episode without too many bruises.
1:15.8	So let's continue to dig into all of the topics that we each brought along.
1:20.7	But before we do too much digging, I want to throw in a quick lightning round here
1:25.1	where you have to do a quick sort of choice between two
1:28.9	options and I'm going to read you the choice just to hear your kind of thoughts on that and that
	...

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