Ep. 1177: Two Trend Following Minds with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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How to Build a Model That Captures Trends
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. All you can say about hogs and bonds is that they have the potential to demonstrate trends. 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, and therefore I overweight the financials.
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