Michael Covel's Trend Following cover image

Ep. 1184: Robert Carver Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

00:00

The Advantages of Diversification

I love the part of your book where you break down and get people to understand it's symmetric versus asymmetric. Most people think about risk in a nice symmetric way, so they're only worried about losing money. To me, if I make an unexpectedly large profit on one day, my first thought is there's probably only a 51% chance than any given day that I'll make profits. If you just focus on losses, then you're effectively throwing away half of your distribution. You get a less robust estimate of your risk.

Transcript
Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
App store bannerPlay store banner
Get the app