Episode description
Episode description
Richard Brennan joins us this week to discuss how to spot potential outlier trades before they occur, the power of simple trading rules over complexity, why endogenous events move markets 90% of the time and news events are behind only 10% of large market moves, how Trend Following models safely reduce risk exposure automatically as drawdowns increase, how to approach correlated markets in your portfolio, how to achieve diversification with limited capital, the Efficient Market Hypothesis versus Adaptive Market Hypothesis, and the differences between Trend Following and ‘Trend Trading’.
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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
In this episode, we discuss:
- Spotting patterns among previous outliers
- Simplicity over complexity
- How little the news really moves markets
- Professional Trend Following versus 'Trend Trading'
- The ability of Trend Following models to automatically reduce open risk during drawdowns
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Episode TimeStamps:
00:00 – Intro
01:19 – A big thank you to listeners of the show for leaving your 5-star reviews on iTunes, and feel free to share this link with 3 of your like-minded friends:
https://top-traders-unplugged.captivate.fm/listen
02:41 – Macro recap from Niels
04:13 – Weekly review of performance
11:14 – Q1; Jonathan: What are the parameters that indicate a high chance of an outlier...