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Ep. 1098: Tom Basso Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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How Much Margin Do You Need to Carry a Diversified Portfolio?

When you first got involved in futures contracts, was there a certain due diligence you had to do? I had to look at the firm that i was at, number one. Number two, try to decide, how does the exchange, and all the broker dealer are future commission merchants that are part of the exchange along with operations?" And i had to also then go to the third level of my own account. How much margin do you need to carry a reasonably leveraged set of portfolios? At somewhere around 15 %, no more than 20 for a fairly diversified futures portfolio,. That gave me 80% cash sitting in tea bills or something else to help protect it from default situation. Because if

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