SI111: Trend Following pros and cons ft. Michael Covel

<p>Legendary Trend Following author &amp; podcast host, Michael Covel, joins us today to discuss the far-reaching popularity of his books, the advantages of allocating to a Trend Following manager rather than DIY trading, managing money for clients vs being an unknown successful private trader, why Trend Following funds should worry about AUM growing to be too large, why Trend Following still deserves an important allocation to any investment portfolio after recent mediocre returns, and whether central bank Quantitive Easing programs have changed the landscape for systematic investors.</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&nbsp;<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&nbsp;<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 &amp; Review</strong> on&nbsp;<a href="https://www.toptradersunplugged.com/reviewttu" rel="noopener noreferrer" target="_blank"><strong>iTunes</strong></a>&nbsp;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>01:04 </strong>– Weekly review of performance</p><p><strong>10:17</strong> – Moritz: Do you have any new books in the making?</p><p><strong>13:07</strong> – Announcement of Jack Schwager joining us on the show in 2 week’s time</p><p><strong>13:16</strong> – Moritz: How is your personal trading going?</p><p><strong>16:00</strong> – Listener question; Saeed: Which market sectors have the longest trends?</p><p><strong>28:50</strong> – Moritz: Do you think Trend Following is over-crowded?</p><p><strong>29:49</strong> – Niels: Is Trend Following’s mediocre performance over the last 10 years a new normal or an anomaly?</p><p><strong>30:38</strong> – Niels: What are your thoughts on pure Trend Following versus multi-strategy?</p><p><strong>33:27</strong> – Niels: How have institutional investors’ attitudes to Trend Following changed over the past 20 years?</p><p><strong>38:24</strong> – Niels: What do you say to those who ask, ‘has quantitive easing killed Trend Following’?</p><p><strong>41:32</strong> – Niels: What about those who say, ‘fast moving markets have killed Trend Following’?</p><p><strong>43:34</strong> – Niels: What do you think about managers overriding their systems during high-volatility periods?</p><p><strong>47:45</strong> – Niels: What are your thoughts on AI strategies?</p><p><strong>54:10</strong> – Niels: How do you feel about the Trend Following being labelled as ‘crisis alpha’?</p><p><strong>01:00:30</strong> – Benchmark performance update</p><p><strong>01:01:30</strong> – Recommended podcast listening this week: <a href="https://www.bloomberg.com/news/audio/2020-10-19/former-dunkin-donuts-ceo-on-new-book-podcast" rel="noopener noreferrer" target="_blank">Robert Rosenberg on Bloomberg’s Business Week podcast</a>, <a href="https://www.theinvestorspodcast.com/episodes/tip318-the-passive-investing-impact-w-mike-green/" rel="noopener noreferrer" target="_blank">Michael Green on The Investor’s Podcast</a> &amp; <a href="https://tim.blog/2020/10/14/naval/" rel="noopener noreferrer" target="_blank">Naval Ravikant on the Tim Ferris podcast</a></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>