"This game is a number’s game, you are losing a lot and winning bigger sometimes." - Katy Kaminski (Tweet)

Thanks for tuning back into our show, we know it has been a while since we've published an episode. However, you are in for a real treat: this is the first episode where we have a roundtable of guests, representing some of the most prominent firms in the trend following space. Our guests have a combined 100 years of track record, and we'll explore it all in this episode.

We discuss the history of trend following, what it takes to practice trend following, and the human biases that effect our trading.

Thanks for listening and please welcome Katy Kaminski, Alex Greyserman and Roberto Osorio.

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In This Episode, You'll Learn:

The history of trend-following

"Trend following is not going to go away anytime soon." - Roberto Osorio (Tweet)

The phenomenon of momentum

When the concept of trend following that we know today came about

Why Katy & Alex gathered data from hundreds of years ago

Katy talks about their book on Trend Following

Why markets are not getting more efficient

"In trend following, you are trying to capture divergence, movements across markets." - Katy Kaminski (Tweet)

Why  the edge in Trend Following is "knowing what you don’t know"

How long it took for Alex to start believing in trend following

Roberto’s first exposure to trend following

Why humility is necessary to practice trend following

"The edge is knowing what we don’t know." - Alex Greyserman (Tweet)

The importance of taking the human emotion out of the decision process

Katy’s voodoo finance and heuristics

Are all CTA’s trend-followers?

"The way you follow a trade after you get in defines whether you are a trend follower or not." - Alex Greyserman  (Tweet)

Alex’s Random Entry System that uses coin flips

The three decisions that are involved in a trade

The fact and fiction of how difficult it is to do trend-following

"If liquidity is high like in trend following, I really see every moment as a decision point." - Roberto Osorio (Tweet)

Why humans suffer from representative bias

The factor of simplicity when making a trend following system

Resources & Links Mentioned in this Episode:

Trend Following with Managed Futures: The Search for Crisis Alpha

Market Wizards

Tulip mania

David Ricardo

Lake Wobegon syndrome

This episode was sponsored by BarclayHedge:

 

Connect with our guests:

Follow Katy Kaminski on Linkedin

Follow Alex Greyserman on Linkedin

Follow Roberto Osorio on Linkedin

"The three guests represent a combined track record of more than 100 years." - Niels Kaastrup-Larsen (Tweet)

Full Transcript

The following is a full detailed transcript of this conversion. Click here to subscribe to our mailing list, and get full access to our library of downloadable eBook transcripts!

Niels

It’s been awhile since I published my last episode. First of all, thanks for being patient and sticking with me and the podcast. However, I hope you will agree with me that it’s been worth the wait because what I have in store for you today I think is really unique, and something that I’ve never done before. So far I have focused on very detailed one-on-one conversations with some really interesting and successful traders. I’ve been overwhelmed with your positive feedback.  

I have published what I think are some useful eBooks written by experts that I hope will highlight some important issues that can help you regardless of whether you are an investor, a trader, or just interested in the markets. Every day I publish my trend barometer that explains the environment for a typical trend following ...