The Meb Faber Show - Better Investing Inside the Mind Of A Successful Trend Follower: Doug Greenig | #548
5 snips
Sep 6, 2024 Doug Greenig, CEO & CIO of Florin Court Capital, brings over 30 years of market experience. He discusses the advantages of trend-following strategies in today's volatile environment, highlighting the importance of trading in unique markets like carbon emissions. Doug reveals why trend following thrives amidst geopolitical conflicts and fiscal instability. He also shares his optimism about China's economic prospects and reflects on memorable moments from his trading career, emphasizing the significance of adaptability in finance.
AI Snips
Chapters
Transcript
Episode notes
Trend Following and Volatility
- Trend followers trade volatility as much as they trade trends.
- Rapid volatility scaling acts as an exit signal when narratives shift and volatility bursts.
Portfolio Construction in Trend Following
- Trend following models, like oscillators and breakouts, are often highly correlated.
- Portfolio construction is crucial for maximizing returns in trend following.
Diversification and Sharpe Ratio
- Diversification improves Sharpe ratios, demonstrated by increasing assets from 5 to 25, then 50, then 100.
- Most developed market CTAs trade around 100 assets, primarily futures.