SI136: When Investments Become A Religion ft. Jerry Parker

Apr 18, 2021

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Jerry Parker returns to the show today to discuss the how investments can often turn into religions, the recent Coinbase IPO, using historical volatility for position sizing, comparing long-term trend following to Buy & Hold, ‘trend strength’ signals, how much of a portfolio should be allocated to Trend Following strategies, mean-reversion systems versus Trend Following systems, and thoughts on finding or adding to new positions.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

In this episode, we discuss:

The perils of becoming 'religious' about our investments
Coinbase's recent stock market listing
Position sizing using historical volatility
Buy & Hold versus Trend Following over long-term look back periods
Mean Reversion trading versus Trend-based trading
The infamous Top Traders Unplugged Trend Barometer

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Episode TimeStamps:

00:00 - Intro

01:36 - Macro recap from Niels

04:37 - Weekly review of returns

09:37 - A question for Jerry, from Mark: If Trend Following philosophy assumes the future is unknown, why is normal to use historical price data?

24:44 - ‘Trend Strength’ signals, what they are, and if you should use them

26:52 - Whether Trend Followers do actually make market predictions

35:49 - A question for Jerry from Jim: What are your thoughts on combining a Trend Following system with a mean-reversion system?

40:27 - Meb Faber’s recent poll on how much should be allocated to Trend Following

48:31 - Q1; Danny: How do you find new positions to trade?

53:09 - Q2; Mathew: How do you define a longer-term timeframe?

01:00:44 - Performance recap

01:01:50 - Jerry asks Niels to discuss the Top Traders Unplugged Trend Barometer

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