Today, we discuss the benefits of focusing on highly liquid markets, why Trend Following strategies are usually less risky & volatile in any market environment, how simple ideas can often be more robust than complex ideas, whether there’s a place for discretion in trading systems, why a manager’s true aims may not be what you were are expecting, and how emotional intelligence disappears during times of stress. Questions we answer include: Should I have fewer positions, and risk more per trade? How do you deal with a market’s sudden loss of liquidity? How does open equity affect upcoming position sizes?

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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

01:21 – Macro recap from Niels

05:57 – Weekly review of performance

08:09 – Top Tweets

41:53 – Francois: Question 1: How did you handle the huge drop in Oil?

45:18 – Mike: Questions 2/3: How do you handle futures capacity constraints? A large trend will likely attract many Trend Followers, how does this affect your position sizing?

01:00:00 – James: Question 4: How do you deal with gap-downs in a market’s liquidity?

01:01:31 – Dave: Question 5: How does open trade equity affect future position sizing?

01:04:44 – Dante: Question 6: Should I use fewer positions & risk more per trade?

01:11:08 – Benchmark performance update

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

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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. Click Here

2. Daily Trend Barometer and Market Score

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! Click Here

3. Other Resources that can help you

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Disclaimer

SI81: Why simple ideas can often be more robust than complex ideas ft. Moritz Seibert