Ep. 808: Niels Kaastrup-Larsen Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Diversification Trading
I was brought up by the understanding and philosophy that you should buy low and sell high. Once I started looking at what these guys were doing in terms of what trend following really is, it took me some time for sure to fully understand why this was better than buying low and selling high. Of course, once you then get into the nitty gritty details and the appreciation of diversification trading markets that are uncorrelated, just the risk management, I think it all just fell in place. It's frustrating to me why so few people still embrace the strategy and the concept, because what evidence do they have to support the idea that you shouldn't include it in your portfolio?
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