Ep. 965: The Tom Basso Book with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Negatives of Trend Following
The S&P has seen multiple booms and busts in the last 15 to 20 years. If you had an investment which was 50% equity than 50% trend following, it would have made 100%. The Nikkei is at about 15 grand; where's the all-time high? 1989. So we have this, for the statisticians in the audience, positive skew, right? And there's very, very, very few strategies out there anywhere except for trend following,. that you have a positive skew and that's what gives it the benefit.
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