OI05: Is Trading Fewer Markets Actually Better? ft. Richard Liddle & Gareth Abbot

OI05: Is Trading Fewer Markets Actually Better? ft. Richard Liddle & Gareth Abbot

In this episode, Moritz Seibert speaks with Gareth Abbot and Richard Liddle from Bowmoor Capital, a trend following firm based in the UK. Gareth and Richard explain why they decided to go against many trend followers and limit their investment universe to 21 markets – a “compact” portfolio – and why additional markets would likely dilute the return stream they aim to generate. We also speak about their portfolio construction process which includes the combination of 16 systems and results in what they call “smart pyramiding” in and out of positions. Finally, we touch on dynamic position sizing.

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Episode TimeStamps:

02:09 - Introduction to Richard Liddle and Gareth Abbot

05:19 - How did they get into investing?

09:43 - Why trend following?

13:55 - Solving the market puzzle

15:36 - How they designed their strategy?

18:46 - The reason for their market selection

24:18 - Why exactly 21 markets?

31:13 - How did they design their system?

39:47 - Why they don't trade hundreds of markets

42:08 - What timeframes and models do they work with?

50:13 - Controlling the heat

55:31 - What is "heat" in a portfolio?

57:26 - How do they manage the heat?

01:00:06 - How they use dynamic position sizing

01:05:00 - Thanks for listening

Copyright © 2025 – CMC AG – All Rights Reserved

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2. Daily Trend Barometer and Market Score

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