SI203: A new way of doing Trend Following ft. Jerry Parker
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 670 Ratings
🗓️ 30 July 2022
⏱️ 84 minutes
🧾️ Download transcript
Summary
Today, we are joined by Jerry Parker where we dive into some of the highlights from the challenging month of July and how the industry has handled the current high level of volatility and trend reversals, why Trend Following continues to work but how narratives can create vicious reversals in the markets. We also discuss questions from listeners regarding Jerry’s strategies for entering and exiting trades, advice for backtesting using continuous futures contracts, how to handle stop losses and including equities in your allocation strategy. Lastly, Jerry describes why he is in favour of accidental diversification and why he is always on the hunt for outliers, why adding more markets has no impact on the robustness of a system and why he prefers to be a “slow tractor”. We finish off discussing how some firms claim that they can replicate the returns of Hedge Funds and CTAs without charging much for it and Jerry reveals a profound change to how he wants to extract trends from markets...even if it means that he will more correlated to Equities.
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Episode TimeStamps:
00:00 - Intro
02:02 - Market overview
03:52 - Major events of the month
16:00 - The importance of narratives
19:16 - How Jerry handles equities
22:39 - Q1, Michael: How does Jerry enter a new trade after he exited his first?
25:55 - Q2, Caleb: Backtesting using continuous futures contracts
30:02 - Q3, Adam: How to use stop losses and equities inclusion
36:09...
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 |
| 0:07.2 | and learn about the most dependable and consistent yet often overlooked investment strategy. |
| 0:13.2 | Welcome to the Systematic Investor Series. |
| 0:27.1 | Welcome and welcome back to this week's edition of the Systematic Investor Series with Jerry Parker and me, Neil's Castleblassen, |
| 0:29.4 | where each week we take the pulse of the global markets |
| 0:31.3 | through the lens of a rules-based investor. |
| 0:34.5 | Now, for those of you who are regular listeners, |
| 0:36.3 | our conversations are intended |
| 0:37.6 | for you to learn and grow as rules-based investors. And if you're new to the show, we hope that |
| 0:42.3 | today's episode will trigger your curiosity to check out the back catalog and listen to the past |
| 0:47.2 | episodes that you may have missed, like last week's episode with Mark, where we, amongst other |
| 0:51.9 | things, discussed how to manage systemic risks as a trend |
| 0:55.3 | follower, how to construct a portfolio using trend following funds, and Mark also offered a new |
| 1:00.3 | explanation as to why trend following works, which I really liked. And also, I would encourage |
| 1:05.8 | you to check out the Wednesday episode with author Andrew Smithers, where Kevin Kolda and discussed |
| 1:10.8 | Andrew's latest book, The Economics of the Stock Market, author Andrew Smithers, where Kevin Coldiron discussed Andrew's latest book, |
| 1:12.0 | The Economics of the Stock Market, which among other things, is about how we can achieve |
| 1:17.5 | economic stability by using a different economic model when managing that. So if you missed any |
| 1:24.5 | of those episodes, I invite you to go and check them out right after you finish today's episodes. |
| 1:30.8 | Jerry, always fantastic to be with you. |
| 1:33.8 | How are things, well, I should say how are things where you are because it's not the usual place. |
| 1:38.5 | That's right. |
... |
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