SI46: Are commodities more risky to trade than equities?
Top Traders Unplugged29 Heinä 2019

SI46: Are commodities more risky to trade than equities?

This week, we discuss whether commodities are more risky to trade than equities, if a stocks-only Trend Following strategy can be profitable in the long run, if a deep drawdown is worse than a long drawdown, and the importance of over-estimating any possible drawdowns implied by a backtest. Questions answered include: should all Trend Following funds be required to provide Crisis Alpha? Is there ever a good time to override your system and trade outside of the rules? Should you always execute trades from your signals immediately, or wait for an extra confirmation sometimes? Is there an edge to be gained from seeking the perfect entry into a long-term trade? How many positions should you have open at any one time? What can be considered a good amount of leverage?

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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:

00:00 – Request for podcast reviews from listeners

02:15 – Intro/Macro recap from Niels

07:50 – Weekly review of performance

12:50 – Top tweets

58:50 – Questions 1/2/3: James; Why don’t you like the original Turtle system? What systems do you prefer? Regarding entries/exits, do you prefer executing intraday, on close, etc.?

01:06:20 – Question 4: James; What is the average leverage in your portfolio and how many positions do you hold at any one time?

01:12:30 – Benchmark performance update

01:14:00 – Discussion of Salem Abraham decision to revamp his business away from a classic CTA Trend Following shop

Copyright © 2025 – CMC AG – All Rights Reserved

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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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