SI178: Value Investing vs Trend Following ft. Jerry Parker
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 712 Ratings
🗓️ 6 February 2022
⏱️ 77 minutes
🧾️ Download transcript
Summary
Jerry Parker joins us today to discuss the importance of hanging on to your outlier winners, value investing versus trend following, the optimum number of entry & signals per trade, the need to redefine ‘safe assets’, Jerry & Richard Brennans’ thoughts on Howard Marks’ remarks about Trend Following, risk parity within a Trend Following portfolio, the unpredictability of endogenous outliers, and deconstructing the old narrative that ‘Trend Following is dead’.
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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:
- Letting winners run and cutting losses early
- Using 1 entry signal and 1 exit signal per trade versus multiple signals
- Redefining what are typically known as ‘safe assets’
- Howard Marks’ opinion on following price
- Achieving effective risk parity within a portfolio
- How endogenous outliers are hard to predict
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Episode TimeStamps:
00:00 – Intro
01:44 – Macro recap from Niels
05:24 – Weekly review of performance
11:51 – Jerry & Rich’s thoughts on Howard Mark’s opinion of Trend Following
24:46 – Why exit rules might be harder to create than entry rules
43:45 – Risk parity within a Trend Following portfolio
51:03 – The unpredictability of endogenous outliers
01:10:08 – The old narrative that ‘Trend Following is dead’
01:13:54 – Benchmark performance update
01:15:01 A huge thank you to listeners of the show for leaving your 5-star reviews on iTunes, and feel free to share our link with 3 of your like-minded friends:
https://top-traders-unplugged.captivate.fm/listen
Copyright © 2025 – CMC AG – All Rights Reserved
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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 Neil's Kostrup Larson on a raw and honest journey into the world of systematic investing and learn about the most dependable and consistent yet often overlooked investment strategy. |
| 0:13.0 | Welcome to the Systematic Investor Series. |
| 0:25.9 | Welcome and welcome back to this week's edition of the Systematic Investor series with Jerry Parker and me, Neil's Castroblaston, where each week we take the pulse of the global |
| 0:30.3 | markets through the lens of a rules-based investor. Now, for those of you who are regular |
| 0:35.2 | listeners, our conversations are intended for you to learn |
| 0:38.0 | and grow as rules-based investors. And if you're new to the show, we hope that today's episode |
| 0:42.5 | will trigger your curiosity to check out the back catalog and listen to the past episodes that |
| 0:47.6 | you may have missed. Like last week's episode with Mark, where we discussed how central bank |
| 0:52.3 | policies may affect trend following strategies. |
| 0:55.0 | And we also discuss the Howard Mark's latest memo as he made a remark about trend following, |
| 1:01.7 | which we could not resist commenting on. |
| 1:03.9 | So if you missed that episode, I encourage you to go back and check it out. |
| 1:08.3 | Jerry, always fantastic to have you back. |
| 1:10.8 | How are you doing? |
| 1:11.7 | Where are you at the moment? |
| 1:13.3 | Same here. |
| 1:14.6 | Kind of chilly Florida. |
| 1:15.9 | It's been cold here for a few weeks. |
| 1:17.8 | You know, compared to sunny in 75 or 80. |
| 1:21.5 | It's been in the 60s and 50s, all the way down to 40s. |
| 1:24.9 | So I'm not used to this. |
| 1:26.7 | So, but hopefully we'll get back on that warming trend and remind, keep reminding ourselves |
... |
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