Richard Brennan joins Niels for a conversation that redefines how trend following is understood. Behind the shared language lie four distinct archetypes - each built around a different purpose. Richard walks through them with clarity, then unpacks the trade-offs: static sizing vs. vol targeting, symmetry vs. asymmetry, speed vs. patience. A real-world portfolio test drives the point home... some strategies don’t just prefer diversification, they depend on it. This episode is about design, but more than that, it’s about alignment. Because in a field crowded with performance metrics, the most important question often goes unasked: what exactly is this built to do?

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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Episode TimeStamps:

01:58 - ChatGPT5 is on fire

06:04 - The AI revolution could be the end of humanity

14:23 - Industry performance update

19:19 - An overview of what topics this episode will cover

21:23 - The decisions that really matter in trend following

27:10 - The 4 archetypes of trend following

34:05 - Its not about facts, its about objectives

40:09 - 1st debate: Diversification vs. concentration

48:52 - 2nd debate: Absolute momentum vs. cross-sectional momentum

50:21 - 3rd debate: Volatility targeting vs static small bits

54:02 - What trend followers sometimes get wrong about volatility and position sizing

57:48 - 4th debate: Symmetry vs asymmetry

01:02:00 - 5th debate: Speed of execution

01:08:01 - Why your approach to diversification is critical

01:18:36 - Brennan's preferences in market diversification

01:22:52 - Is ChatGPT5 actually a downgrade?

01:25:27 - What is up for next week?

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

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