59 The Systematic Investor Series – October 29th, 2019

Published: Oct. 29, 2019, 5:40 a.m.

On the show today, we cover some of the dangers of investing in something based on its story alone, how market environments can change while the behaviour of participants stays the same, why Trend Followers rely on secret fundamental information being baked into price, the importance of avoiding Outcome Bias,  how cockroaches behave in ways that should be the basis of any robust Trading System, and Niels explains how to use the Top Traders Unplugged Trend Barometer.  Questions we answer this week include: Do you prefer simple or exponential Moving Averages? Should you use the closing price or the settlement price? Do you measure ATR from the closing price or settlement price?  How would you best illustrate trend strength over particular periods of time? If any listeners would like to leave us a voicemail message to play on the show, you can do so here. Learn more about the free-to-use Top Traders Unplugged Trend Barometer here. You can download your free guide to Systematic Investing, and subscribe to our mailing list by visiting TopTradersUnplugged.com Get a free copy of my latest book "The Many Flavors of Trend Following" here. Send your questions to info@toptradersunplugged.com Follow Niels, Jerry & Moritz on Twitter: @TopTradersLive, @RJparkerjr09 and @MoritzSeibert And please share this episode with a like-minded friend and leave an honest rating & review on iTunes so more people can discover the podcast. Episode Summary 0:00 - Intro 0:50 - Live event recap 6:00 - Macro recap from Niels 9:55 - Weekly review of returns 12:45 Niels describes his trend indicator 16:40 - Top tweets 34:55 - Questions 1/2: Scott; Do you prefer a specific type of moving average? Do you use settlement or last trade in your models? 38:50 - Question 3: Carl; Do you calculate ATR using the closing price (versus entry price)? 40:30 - Question 4: Nathan; How do you articulate the current volatility environment versus history? 50:00 - Performance recap 51:40 - More live event comments Subscribe on: