SI136: When Investments Become A Religion ft. Jerry Parker

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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Send your questions to info@toptradersunplugged.com

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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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