SI25: Where to start your Trend Following jouney?
March 3, 2019
1 hr 37 min
Full
168 of 941
March 3, 2019
SI25: Where to start your Trend Following jouney?
0:00 / 1:37:57
Excerpt playback isn’t available for this episode — use the full-episode link.
Search the Record
Moment search isn’t open for this episode yet
When it opens, you’ll be able to type any phrase and jump straight to the second it was said.
The Sharpe Exchange Episodes Around March 3, 2019
Episode 168 of 941 — walk the feed in the order it was published.
1:37:57This episodeSI25: Where to start your Trend Following jouney?
Summary
<p>Discussion points this week include: Where to start if you want to become a Trend Following Trader, whether or not to trade markets differently, Bloomberg’s article on the supposed Failing of Trend Following, how strategies can cope and adapt during drawdowns, how to know when you are truly diversified or not, and a lot more.</p><p><strong>-----</strong></p><p><strong>50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - </strong><a href="https://dunncapital.com/DUNN%2050-Year%20Book-TTU" rel="noopener noreferrer" target="_blank"><strong>CLICK HERE</strong></a></p><p>-----</p><p><br /></p><p>Follow Niels on <a href="https://twitter.com/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>Twitter</strong></a>, <a href="https://www.linkedin.com/in/nielskaastruplarsen" rel="noopener noreferrer" target="_blank"><strong>LinkedIn</strong></a>, <a href="https://www.youtube.com/user/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>YouTube</strong></a><strong> </strong>or via the <a href="https://www.toptradersunplugged.com/" rel="noopener noreferrer" target="_blank"><strong>TTU website</strong></a>.</p><p><strong>IT’s TRUE </strong>? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written <a href="https://www.toptradersunplugged.com/Ultimate" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>And you can get a free copy of my latest book “<strong>Ten Reasons to Add Trend Following to Your Portfolio</strong>” <a href="https://www.toptradersunplugged.com/10-reasons-shownotes" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Learn more about the Trend Barometer <a href="https://www.toptradersunplugged.com/resources/market-trends/" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Send your questions to <a href="mailto:info@toptradersunplugged.com%22%20%5Ct%20%22_blank" rel="noopener noreferrer" target="_blank">info@toptradersunplugged.com</a></p><p>And please <strong>share this episode</strong> with a like-minded friend and <strong>leave an honest Rating & Review</strong> on <a href="https://www.toptradersunplugged.com/reviewttu" rel="noopener noreferrer" target="_blank"><strong>iTunes</strong></a> or <a href="https://open.spotify.com/show/2OnOvLbIV3AttbFLxuoaBW" rel="noopener noreferrer" target="_blank"><strong>Spotify</strong></a> so more people can discover the podcast.</p><p><strong>Episode TimeStamps:</strong></p><p><strong>00:00</strong> – Intro</p><p><strong>01:20</strong> – Weekly review of performance</p><p><strong>07:00 – </strong>Top tweets</p><p><strong>32:30</strong> – Question 1: Karl; Where would you start if you wanted to become a Trend Follower?</p><p><strong>36:30</strong> – Question 2/3: Paul; Considering return volatility and investor tolerance, how do you help investors determine their optimal allocation to Trend Following? Have your personal volatility preferences changed over time?</p><p><strong>45:45</strong> – Question 4: Antonio; If historical drawdowns have no bearing on the future (as the podcast has said), how do you know your system won’t blow up?</p><p><strong>50:10</strong> – Question 5: Antonio; How do you calculate future expected returns with a TF system?</p><p><strong>55:20</strong> – Question 6: Antonio; If you can’t estimate future returns, why bet TF will keep working in the future?</p><p><strong>59:30</strong> – Question 7: Antonio; Should recent performance of TF systems influence future return expectations?</p><p><strong>01:03:10</strong> – Question 8: Brian; How does a CTA choose a company to sell their products?</p><p><strong>01:05:00</strong> – Question 9/10: Samuel; Based on correlation, what level of diversification is enough? What will cause Jerry to adjust his risk?</p><p><strong>01:09:00</strong> – Question 11: Samuel; How often should positions be adjusted based on account equity?</p><p><strong>01:15:15</strong> – Question 12: Brian; Why do investors hold CTA returns to a higher standard (versus other hedge funds)?</p><p><strong>01:18:50</strong> – Question 13: Seth; What are the unique “sectors” that drive diversification in a TF system?</p><p><strong>01:22:40</strong> – Discussion of <a href="https://www.bloomberg.com/news/articles/2019-03-01/one-of-wall-street-s-most-popular-trading-strategies-is-now-failing" rel="noopener noreferrer" target="_blank">Bloomberg article on TF failing</a> – suggested by Christian</p><p><strong>01:35:00</strong> – Benchmark performance update</p><p>Copyright © 2025 – CMC AG – All Rights Reserved</p><p>----</p><p><strong>PLUS:</strong> Whenever you're ready... here are 3 ways I can help you in your investment Journey:</p><p><strong>1. eBooks that cover key topics that you need to know about </strong></p><p>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. <a href="https://www.toptradersunplugged.com/resources/ebooks/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><strong>2. Daily Trend Barometer and Market Score </strong></p><p>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! <a href="https://www.toptradersunplugged.com/resources/market-trends/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><strong>3. Other Resources that can help you</strong></p><p>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. <a href="https://www.toptradersunplugged.com/resources/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><a href="https://www.toptradersunplugged.com/legal/privacy-policy/" rel="noopener noreferrer" target="_blank">Privacy Policy</a></p><p><a href="https://www.toptradersunplugged.com/disclaimer/" rel="noopener noreferrer" target="_blank">Disclaimer</a></p>