Michael Covel is the President TrendFollowing.com and TurtleTrader.com.
In addition, he has a popular interview series where he talks with great traders and about a wide range of topics. We are honored that he chose to interview our portfolio manager, David Stendahl. Here is a link to the Interview.
The interview is simple enough for a novice, but nuanced enough for advanced traders. Some of the topics include:
- Stendahl's world is 100% systematic, and he has been involved in conceptualizing and thinking up systematic approaches to trading the market for decades. But what is a system? Stendahl's explanation may surprise you.
- Stendahl's approach is that a system should have as few moving parts as possible; it should be simple enough to be explained on the back of a cocktail napkin.
- Stendahl explains that your system doesn't have to be complex to work. Sometimes the best system can be only four lines of code.
- Covel and Stendahl make an analogy to cars, and how you can easily fix a simpler car in your garage as opposed to a complex Lexus.
- Stendahl explains that everyone is using a system in one way or another: every time you make a decision to buy or liquidate, whether it's based on a real system or based on advice from someone on the television, it's systematic in some regard.
- If you can talk it, you should be able to quantify it. If you can't quantify it, it might not really be there.
- Find out how Stendahl's dyslexia played a role in his technical trading, and how he turned this disadvantage into an advantage.
- Covel and Stendahl discuss Ray Dalio of Bridgewater, who says that he is 100% systematic, but doesn't use any technical information.
- Covel and Stendahl also discuss position sizing and money management, and how you can approach this systematically.
There is a lot of good stuff in the interview. Hope you enjoy it.
Here is a review of Trend Following and the post on Trend Commandments.
See the list of all Covel's Trend Following Manifesto Podcasts in iTunes and here for a more complete description of each recording. Check it out; he has produced a bunch of terrific interviews that are worth listening to because of their educational content, and because they will make you think.
Your Weekend Reading Linkfest
Lots of good stuff this week to distract you from the bad.
Here are some of the posts that caught my eye. Hope you find something interesting.
Lighter Links:
Trading Links:
Posted at 09:24 AM in Books, Business, Current Affairs, Ideas, Market Commentary, Music, Science, Trading | Permalink | Comments (0) | TrackBack (0)
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