Michael Covel's Trend Following Ep. 1361: Crypto Blow Up with Michael Covel on Trend Following Radio
Oct 20, 2025
Dive into the wild world of crypto as Michael Covel shares insights on the dangers of lottery-style betting in leveraged trading. He contrasts trend-following with the luck-based HODL approach, urging traders to cut losses and have a solid strategy. Explore the current gold trends through a historical lens and the critical need for diversification. Michael warns against relying on predictive technical analysis and fake AI narratives, advocating for a focus on real price movements and systematic learning from experienced traders.
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Avoid Lottery-Style Leverage
- Avoid extreme leverage and single-market bets that can wipe you out quickly.
- Use exits and risk controls to ride trends without suffering catastrophic drawdowns.
Let Trends Run With Survivable Exits
- Trend following captures big winners like gold or Bitcoin when you let trends run with exits.
- Predicting tops is impossible, so focus on survivable exits rather than perfect timing.
Design For Survival First
- Ensure you can survive unexpected market shocks to continue trading another day.
- Design position sizes and risk limits so a surprise event doesn't force you out permanently.
