SI77: Trading through the quickest 10% correction in stock market history

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8 • 670 Ratings

🗓️ 1 March 2020

⏱️ 75 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

After the quickest 10% correction straight from an all-time-high in stock market history last week, we discuss how human emotions & behaviours played their part, the threat of the coronavirus and its effect on world economies, why a week is too short a time to judge if CTAs are providing ‘crisis alpha’, and why short-term systems should have performed really well during the selloff. Questions we cover include: How do you define ‘signal strength’? Do you use stop-losses, and if so, how? Can you apply Trend Following systems to micro futures contracts?

-----

50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

-----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to [email protected]

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Episode TimeStamps:

00:00 – Intro

01:20 – Macro recap from Niels

03:00 – Weekly review of performance

14:13 – Top Tweets

39:45 – Brian; Question 1: Have any of your guests mentioned the use of different rules for different markets?

44:25 – Jacob; Question 2: What are the criteria for deciding to change your rules?

51:29 – Adrian; Question 3: How do you define signal strength?

55:46 – Jonathan; Question 4: If you use stop-losses, how do you use them?

01:02:51 – Craig; Question 5: How regularly should you communicate with your clients?

01:08:20 – Russ; Question 6: Can I apply a trend following trading system to micro futures contracts?

01:11:22 – Benchmark performance update

----

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...

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 raw and honest journey into the world of systematic investing and learn about the most dependable and consistent yet often overlooked investment strategy.
0:15.1	Welcome to the Systematic Investor podcast series.
0:22.9	Welcome or welcome back to this week's edition of the Systematic Investor series
0:26.7	with Jerry Parker, Moritz Siebert and I, Nils Castro-Blasen, where each week we take the
0:31.0	pulse of the global market through the lens of a rules-based investor.
0:35.3	And for long-term listeners, our conversations are intended to keep you
0:39.3	focused and inspired to continue your trend-following journey. And if you're new to the show,
0:44.7	our hope is that today's episode will trigger your curiosity to check out our back catalog
0:50.2	and all the past episodes that you may have missed. Jerry Moritz, good morning, good afternoon.
0:55.0	How are things where you are today?
0:57.0	Good morning, Jerry. Good afternoon, Neil's doing fine.
1:00.0	Cold here in New York City, but you know a lot of fun stuff going on.
1:06.0	Just trying to weather the stock market crash this week and stay inside and hunker down.
1:12.6	Yeah, it's probably one of those weeks where we will have enough to talk about, I think.
1:18.6	So let's see how it goes.
1:20.6	Kind of a quick roundup, I think most people listening to us today know what happened last week in the financial markets.
1:30.2	From what I can tell from the headlines just this morning, it is in fact the fastest drop
1:37.6	larger than 10% in a seven-day kind of trading period from a new all-time high in history.
1:49.3	But it wasn't the only records that were set last week, interest rates.
2:00.4	The 10-year US notes declined the yield down to 1.13, dropped by 25% to hit that all-time low of 1.13 and of course 30-year bonds also made
2:02.5	new record lows. And I think that is kind of important because it sends a different message
2:09.6	to that of the equity markets, recent kind of hitting very high valuations, certainly compared
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Niels Kaastrup-Larsen, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Niels Kaastrup-Larsen and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.