Ep. 1081: Wise Trading Voices with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Benefits of Trading Futures
Trading futures is a way to express an opinion, set up an asymmetric bet and provide liquidity to commercial hedgers in their time of need. In return, theoretically, you're entitled to a sustainable risk premium for doing that part. If they lose on the trade to you, you win, and they win as well. That's a symbiotic, mutualistic type relationship between trend followers and hedgers. And I think that's why it persists over time and why it's worked for 50 years.
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