SI201: Trend Followers Positioned for Recession ft. Richard Brennan
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 670 Ratings
🗓️ 16 July 2022
⏱️ 84 minutes
🧾️ Download transcript
Summary
Today, Richard Brennan tackle lots of great questions from listeners as to why Trend Following works, why trends occur in markets and why it is best to exploit them using a systematic approach, the idea of doing Trend Following on Trend Following using the TTU trend barometer. We also discuss different ways of looking at leverage in your portfolio, pros and cons of using stops and different approaches to applying volatility targeting. Lastly, we discuss why it can be beneficial to trade more than one Trend Following system, the issues that can occur when using the same system for a diversified composite, how to avoid the anxiety associated with building drawdowns and finally we address recent statements made that CTAs may be not be well positioned should we enter into a recession.
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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
02:03 - Update on recent market and economic news?
08:36 - Industry Performance update
10:28 - Q1, Bruno: Why does Trend Following work?
22:57 - Q2, Elie: Doing Trend Following on Trend Following
29:50 - Q3, Adam: How to calculate leverage for a CTA?
35:43 - Q4, Mark: Complicating your system with stops & views on volatility targeting
54:51 - Trading an ensemble of systems vs. a single system
58:44 - Using the same systems for a diversified portfolio
01:06:12 - Dealing with the psychological challenges of drawdowns
01:13:22 - Comments on...
Transcript
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| 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. |
| 0:27.7 | Welcome and welcome back to this week's edition of the systematic investor series with Richard Brennan and I, Nils Kastrelarsson, where each week we take the pulse of the global markets |
| 0:31.7 | through the lens of a rules-based investor. If you're new to the show, I hope that today's |
| 0:37.4 | episode will trigger your curiosity enough to check out the back catal you're new to the show, I hope that today's episode will trigger your curiosity |
| 0:38.9 | enough to check out the back catalog and listen to the past episodes you may have missed, |
| 0:43.4 | like my conversation with Alan last week, where we had quite a detailed discussion on |
| 0:47.9 | what has been referred to as return stacking when building a diversified portfolio and |
| 0:53.0 | the risk implications. |
| 0:54.8 | Also, I would like to encourage you to listen to the midweek episode where Kevin Coldine |
| 0:58.8 | spoke to author Larry Siegel, who has written a new book called Fewer, Ritcher, Greener, |
| 1:03.7 | and where they discussed the prospects for humanity in an age of abundance |
| 1:08.6 | and how demographic trends |
| 1:11.2 | impacts inflation |
| 1:12.4 | as well as the current energy |
| 1:14.0 | and climate challenges, |
| 1:15.7 | but where there is a refreshingly optimistic tone |
| 1:18.6 | in some of their findings, |
| 1:20.2 | which I think we can all use at this time. |
| 1:24.2 | But of course, you shouldn't head over |
| 1:25.9 | and listen to that before we're done |
| 1:27.4 | speaking with Rich today. |
... |
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