Most investors focus on returns, but what about the shape of those returns? Today, Rich and I explore the often overlooked concept of convexity - a game-changing principle in trend following that helps us thrive in unpredictable markets. Inspired by insights from our recent guest, Dave Dredge, we break down why mastering convexity is key to cutting losses early, riding big winners, and staying ahead of market turbulence.
If you’re serious about protecting and growing your portfoli - while making smarter, more systematic decisions - this episode is a must-listen. Join us for a deep dive into the mechanics of risk, reward, and the powerful edge convexity can give your portfolio!
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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
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Episode TimeStamps:
01:49 - What has caught our attention recently?
06:20 - Industry performance update
11:10 - Why does convexity matter for trend following?
36:13 - What do we actually mean by convexity?
42:04 - Sharpe world - the pitfalls of today's economy
52:30 - Why risk and volatility can feel like the same thing
56:08 - The core of trend following
58:22 - Why open trade equity makes no sense for managers
01:00:03 - The business of trend following
01:01:37 - The exponential potential of trend following
01:08:05 - The times have changed - why is trend following more important than ever?
01:11:22 - What is up for next week?
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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:
1. eBooks that cover key topics that you need to know about
In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here
2. Daily Trend Barometer and Market Score
One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here
3. Other Resources that can help you
And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here
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