3min chapter

Michael Covel's Trend Following cover image

Ep. 1119: A Trend Pioneer with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

CHAPTER

How to Build a Model That Captures Trends

I start from the very high level premise that all assets have an equal opportunity to manifest trends. The whole model building process is an attempt to preserve that opportunity and make it as broad and robust as possible. We try and avoid those built in biases. I am indifferent as to whether your regional equity market is in a roaring bull trend, or whether it's in a terrible bear trend. And I don't look at how different markets have performed historically and say my models are better at trading commodities than they are trading financials. So we keep it completely agnostic directionally and asset allocation wise so that it can grab hold of any opportunity that presents itself.

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