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Top Traders Unplugged - Niels Kaastrup-Larsen 13th September 2021
SI157: How to Make Money & Survive in the Markets ft Jerry Parker
00:00:00 01:05:59

SI157: How to Make Money & Survive in the Markets ft Jerry Parker

Today we are joined by Jerry Parker to discuss how shorter-term systems can be more susceptible to market noise, the importance of sticking with your system during different market environments, how major investment firms have consistently performed well by keeping Trend Following in their portfolios, some insights into Jerry’s approach to backtesting, the drawbacks of being labelled as a CTA, Jerry’s bold prediction that Trend Following firms will be the most popular type of investment fund in the future, how trading smaller during bad periods can set you up for success during favourable conditions, ensuring protection against cyber attacks, and why past correlations can’t always be relied upon.

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

In this episode, we discuss:

  • The case for longer-term strategies
  • Not over-optimising strategies to adapt to every market condition
  • How adding Trend Following to a portfolio increases its robustness
  • Why Trend Following firms will be the number one choice among investors in the future
  • How to prevent cyber attacks
  • Why you can't always rely on past correlations to continue

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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

01:32 - A big thank you to our listeners for leaving 5-star reviews in iTunes

02:26 - Macro recap from Niels

04:43 - Weekly review of returns

15:55 - An insight into Jerry Parker’s approach to backtesting

23:06 - Jerry Parker’s thoughts on the challenges of starting a CTA business today and how to overcome them

32:35 - Thoughts on effective succession planning for CTAs, as well as some thoughts on staying safe from cyber attacks

37:41 - Q1; Sebastien: How do you approach currency hedging?

41:17 - How one simple rule can be more powerful than a group of complex rules

44:48 - How shorter-term systems can be susceptible to noise

47:54 - Why past correlations can’t always be relied upon

49:32 - Discussion on a recent TransTrend article on how to respond to extreme volatility in the markets, such as during the COVID-19 pandemic

56:34 - Jerry’s thoughts on system diversification

01:01:59 - Benchmark performance update