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SI167: The Road to Profits is Bumpy ft. Jerry Parker
22nd November 2021 • Top Traders Unplugged • Niels Kaastrup-Larsen
00:00:00 01:03:49

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Jerry Parker joins us today to discuss trading single stocks while maintaining a systematic approach, the benefits of trading a broad universe of assets, how investors naturally gravitate toward strategies with lesser returns, but hidden risks, why you need volatility in order to gain maximum returns, what to do with dividends as a Trend Follower, and diversifying Trend Following models versus diversifying look-back periods.

In this episode, we discuss:

  • A systematic approach to trading single stocks
  • Why you should trade a broad universe of assets
  • Why the best thing to do is often the hardest thing to do as investors
  • Why volatility is our friend, especially when it's directional
  • How to manage dividends as a Trend Following trader
  • The best methods of diversification

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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

01:41 - Feel free to share this podcast with like-minded friends using this link: https://top-traders-unplugged.captivate.fm/listen and a big thank you to those who have left a rating or review on iTunes

02:03 - Macro recap from Niels

03:10 - Weekly review of returns

06:44 - Q1; Robert: How does Jerry select his single stocks to trade?

16:27 - Q2; Brian: What does Jerry do with the dividends from the singles stocks he trades?

20:20 - Discussion on recent New York Times article, ‘The Risk-Return Trade-Off Is Phony’

31:34 - Trend Following and asset selection

37:40 - Why the right thing to do is often the hardest thing to do

45:36 - The need for asymmetry rather than low-volatility 

48:48 - Diversifying Trend Following models versus diversifying TF look-back periods

57:57 - How Trend Following thrives during inflationary environments

01:01:10 - Benchmark performance update