Jerry Parker, Turtle Trader and CTA, talks about trend following, how to approach wins and losses, dealing with drawdowns, managing correlations in asset classes and how changing market dynamics have impacted trend following and the solution. He also gives us some tips on systematic trading including how he trades without relying on optimal values of the past.
Topics discussed
- What types of characteristics Dennis and Eckardt were looking for in the Turtle traders program
- How the Turtles were taught to approach losses
- Common traits amongst the most successful Turtles
- The hardest part of trading as a Turtle
- How Jerry overcame the fear of taking trades
- The biggest lesson being a Turtle
- What Jerry did with the Turtles approach after the program ended
- The impact managing other peoples money can have on trading
- The key factors that make trend following work
- Managing correlations between asset classes
- Long-term vs short-term trend following
- Dealing with drawdowns
- How changes market dynamics have impacted trend following and solutions
- How to diversify to lessen the impact of any one parameter
- How to trade without relying on optimal values of the past
PLUS questions submitted by listeners:
- The difficulties in knowing when to adjust strategy parameters
- Adjusting your system for whipsaws
- Tips to avoid data mining
- Do the Turtles systems still work in the todays markets?
- Are there any markets where the strategies no longer work?
- Short versus Long trades
- Overcoming emotions in trading
- Biggest mistakes and the lessons learnt
- What todays Turtle program would look like
Disclaimer: Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.
