On today’s show, we discuss when having lots of experience can sometimes work against you, why hard and fast rules can be better than making discretionary decisions, the importance of trading in appropriate position sizes, the amount of drawdown that will likely cause you to deviate from your system, the unpopularity of Trend Following strategies, creating an adaptive portfolio that can respond to market conditions, and why Trend Following should play a considerable part in your portfolio.  Questions we answer this week include: Should you use Trend Filters to confirm your entry signals?  Is the 60/40 portfolio usually less volatile than a typical ‘perfect’ Trend Following portfolio?  Do you recommend adding mean-reversion strategies to your Trend Following systems?  How do you define short, medium and long-term?


Follow Niels on https://twitter.com/toptraderslive (Twitter), https://www.linkedin.com/in/nielskaastruplarsen (LinkedIn), https://www.youtube.com/user/toptraderslive (YouTube) or via the https://www.toptradersunplugged.com/ (TTU website). IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written https://www.toptradersunplugged.com/Ultimate (here). And you can get a free copy of my latest book “The Many Flavors of Trend Following” https://www.toptradersunplugged.com/flavor (here). Learn more about the Trend Barometer https://www.toptradersunplugged.com/resources/market-trends/ (here). Send your questions to info@toptradersunplugged.com And please share this episode with a like-minded friend and leave an honest Rating & Review on https://www.toptradersunplugged.com/reviewttu (iTunes) or https://open.spotify.com/show/2OnOvLbIV3AttbFLxuoaBW (Spotify) so more people can discover the podcast. Episode TimeStamps: 00:00 – Intro 01:11 – Macro recap from Niels 02:41 – Weekly review of performance 14:14 – Top Tweets 55:44 – Mike; Questions 1: Is Trend Following a Dynamic Call Replication strategy? 01:00:39 – Seth; Question 2: Do you use Trend Filters to confirm the entry signal? 01:04:10 – Michael; Question 3: Is the daily volatility of a 60/40 portfolio less than that of the ‘perfect’ Trend Following portfolio? 01:08:12 – Brian; Listener comment regarding the best way to explain why Trend Following should play a considerable part in all portfolios. 01:14:33 – Dave; Question 4: When using multiple lookback periods, should risk per trade always stay the same? 01:16:02 – Yohan; Question 5: Do you scale into a trade throughout the day, depending on market liquidity, or just enter the full trade upon getting the signal? 01:18:27 – Drew; Question 6: What does your day-to-day look like? 01:20:43 – Yohan; Question 7: Why not combine mean-reversion strategies with your Trend Following strategies? 01:25:49 – Paul; Question 8: Would testing markets that you don’t plan to trade, give added clarity to your backtests? 01:29:22 – Singh; Question 9: How do you define short, medium and long-term timeframes? 01:34:01 – Benchmark performance update Copyright © 2022 – CMC AG – All Rights Reserved


PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey: 1. eBooks that cover key topics that you need to know about 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. https://www.toptradersunplugged.com/resources/ebooks/ (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!...