SI53: Why most successful Hedge Funds employ Systematic strategies

In today’s episode, we discuss if it’s possible to successfully blur the lines between Discretionary & Systematic Trading, why most of the largest Hedge Funds in the world are Systematic, results of the rolling 10-year returns of Trend Following versus the S&P; 500, how diversification can prevent long drawdown periods, why forming an opinion on your stock position can negatively affect how you manage the trade, and we also explain some of the differences between Cash Contracts and Continuous Contracts.  Questions answered this week include: Should you beware of high win percentages?  Are large drawdowns a normal part of Trend Following? What are the largest up or down moves we’ve ever experienced? ----- EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool -----

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website. IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here. 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 [email protected] And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast. Episode TimeStamps: 00:00 – Intro 01:05 – Macro recap from Niels 05:50 – Weekly review of performance 14:55 – Live event update 10/26/19-10/27/19 15:20 – Top tweets 45:40 – Question 1: Sam; What are the biggest performance moves (up/down) in your career? 54:40 –  Question 2: Sam; Why do some trade long-only (versus long-short)? 57:45- Questions 3/4: Bruno; What do you think about using cash versus futures to calculate trends/create systems? Is there a way to value a commodity? 01:04:40 – Benchmark performance update 01:05:50 – Final thoughts Copyright © 2023 – CMC AG – All Rights Reserved ---- 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