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Top Traders Unplugged - Niels Kaastrup-Larsen 11th July 2021
SI148: The Importance of Capturing A Few Large Trends ft. Jerry Parker
00:00:00 01:08:31

SI148: The Importance of Capturing A Few Large Trends ft. Jerry Parker

Jerry Parker returns today to discuss why margin perhaps isn’t as important as people perceive it to be, the resurgence of ‘classical’ Trend Following, the importance of having a low Sharpe ratio, an update on Jerry’s Bitcoin positioning, the drawbacks of trading a single, longer-term timeframe, how European CTAs successfully compete with American CTAs, the best methods for measuring open risk, and why capturing the fewer large trends may be more important than the many small trends.

Also check out my interview with Turtle Trading legendary mentor Richard Dennis here.

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And you can get a free copy of my latest book “The Many Flavors of Trend Following” here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

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Episode TimeStamps:

00:00 - Intro

01:28 - A huge thank you to our listeners for leaving 5-star reviews in iTunes

02:02 - Macro recap from Niels

12:07 - Q1; Omar: Why isn’t Trend Following more popular as a strategy?

31:37 - Q2 & Q3, Q4; John: What percentage of margin to equity was Jerry using during his Turtle Trading days? What kind of margin levels does Jerry use today at Chesapeake? How do you define and differentiate between ‘profit factors’?

40:01 - Q5; Mark: What look back periods do you tend to prefer?

47:27 - Deep and fast drawdowns versus longer-lasting, shallower drawdowns 

50:48 - Adjusting your trading universe by recent performance

58:11 - How newer money managers can differentiate themselves from their competitors

01:01:04 - Diversification versus concentration

01:05:07 - Benchmark performance update