SI178: Value Investing vs Trend Following ft. Jerry Parker

Feb 6, 2022

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Jerry Parker joins us today to discuss the importance of hanging on to your outlier winners, value investing versus trend following, the optimum number of entry & signals per trade, the need to redefine ‘safe assets’, Jerry & Richard Brennans’ thoughts on Howard Marks’ remarks about Trend Following, risk parity within a Trend Following portfolio, the unpredictability of endogenous outliers, and deconstructing the old narrative that ‘Trend Following is dead’.

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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:

Letting winners run and cutting losses early
Using 1 entry signal and 1 exit signal per trade versus multiple signals
Redefining what are typically known as ‘safe assets’
Howard Marks’ opinion on following price
Achieving effective risk parity within a portfolio
How endogenous outliers are hard to predict

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Episode TimeStamps:

00:00 – Intro

01:44 – Macro recap from Niels

05:24 – Weekly review of performance

11:51 – Jerry & Rich’s thoughts on Howard Mark’s opinion of Trend Following

24:46 – Why exit rules might be harder to create than entry rules

43:45 – Risk parity within a Trend Following portfolio

51:03 – The unpredictability of endogenous outliers

01:10:08 – The old narrative that ‘Trend Following is dead’

01:13:54 – Benchmark performance update

01:15:01 A huge thank you to listeners of the show for leaving your 5-star reviews on iTunes, and feel free to share our link with 3 of your like-minded friends:

https://top-traders-unplugged.captivate.fm/listen

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