"Trend following is the most repeatable method of trading ever invented." - Scot Billington (Tweet)
In This Episode, You'll Learn:
- The story of Scot's childhood obsession with mathematically based, but unknown future outcomes.
- The discipline required to follow a mathematical model.
- The advantages of trend-following and why the media reports that "Trend Following is Dead" every few years.
"Your largest drawdown is always in front of you. But there will always be a winning period bigger than we've seen because it is over a longer period" - Scot Billington (Tweet)
- Scot's philosophy on position sizing.
“I would rather have a small edge with proper position sizing then vice versa” - Scot Billington (Tweet)
- How every sector in the market is highly correlated.
- Getting comfortable with taking risks: they exist and it is impossible to avoid them.
- The Barbell strategy: have very little money at risk, but the money that is at risk is in the most aggressive things that it can be.
- The biggest mistake that allocators make.
"I'm a big believer that the handling of the large moves is sort of all that matters." - Scot Billington (Tweet)
- How Scot conducts research for Covenant Capital.
- Why he is based in Nashville and how he overcomes the challenge of asking investors to buy into the long time-frame.
- Finding your niche as a boutique firm.
"As a boutique firm you are going to attract some people and some people will never be attracted to you." - Scot Billington (Tweet)
- Advice for managers wanting to start firms today.
Resources & Links Mentioned in this Episode:
- Scot mentions how the media often announces the death of trend following. Here’s an article on the subject from Futures Magazine.
- Learn about the Barbell Trading Strategy.
- See 10 Fallacies when Selecting CTAs.
This episode was sponsored by Saxo Bank:
Connect with Covenant Capital Management:
Visit the Website: www.CovenantCap.com
Call Covenant Capital: +1 (615) 678-6742
E-Mail Covenant Capital: firstname.lastname@example.org
Follow Scot Billington on Twitter.
"Any new business is like a small tree: it cannot take a tire swing yet” - Scot Billington (Tweet)