Jerry Parker returns to the show today to discuss the how investments can often turn into religions, the recent Coinbase IPO, using historical volatility for position sizing, comparing long-term trend following to Buy & Hold, ‘trend strength’ signals, how much of a portfolio should be allocated to Trend Following strategies, mean-reversion systems versus Trend Following systems, and thoughts on finding or adding to new positions.
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Top Traders Unplugged wins award for ‘Best Trading Podcast’ and features among the ‘Top 20 Best Investing Podcasts in 2020’ by The Investors Podcast 🏆
0:00 - Intro
1:36 - Macro recap from Niels
4:37 - Weekly review of returns
9:37 - A question for Jerry, from Mark: If Trend Following philosophy assumes the future is unknown, why is normal to use historical price data?
24:44 - ‘Trend Strength’ signals, what they are, and if you should use them
26:52 - Whether Trend Followers do actually make market predictions
35:49 - A question for Jerry from Jim: What are your thoughts on combining a Trend Following system with a mean-reversion system?
40:27 - Meb Faber’s recent poll on how much should be allocated to Trend Following
48:31 - Q1; Danny: How do you find new positions to trade?
53:09 - Q2; Mathew: How do you define a longer-term timeframe?
1:00:44 - Performance recap
1:01:50 - Jerry asks Niels to discuss the Top Traders Unplugged Trend Barometer