74 The Systematic Investor Series – February 8th, 2020

Published: Feb. 8, 2020, 10:03 a.m.

This week, we discuss how Jerry approached his Tesla trade during last week’s parabolic move up, the value of sleeping well at night in comparison to chasing maximum returns, whether Trend Following models can be successfully tilted toward ESG (Sustainable) Investments, thoughts on Negative & Positive Skew, the perceived drawbacks of CTA diversification when stocks are going up, and we also compare Trend Following on stocks, to a fully diversified, Trend Following system.  Questions we answer this week include: What do you do next when you have a significant amount of new AUM?  Do you have any tips or methods, whether psychologically or built into your models, for handling euphoric gains?  How many markets, and how much allocation to each market, do you recommend when constructing a Trading Universe? 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. Find your free copy of Top Traders Unplugged 100 Best Investment Books of all Time 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 1:08 - Macro recap from Niels 1:44 - Weekly review of returns 4:59 - Top Tweets 18:45 - Announcement of special guest Eric Crittenden, from Standpoint Asset Management, joining us on the show in a few weeks 26:21 - Jacob; Question 1: When you have a significant amount of new available equity, what do you do next? 32:57 - James; Question 2: How do you manage a position that makes a Parabolic move, such as Tesla? 41:18 - Matt: Question 3: What methods do you use to handle euphoric gains? 1:01:51 - Camron; Question 4: What is the best way to compile a Trading Universe? How many markets, and how much allocation to each market? 1:04:42 - Sam; Question 5: Are you aware of any Trend Following Traders who tilt towards ESG (Sustainable Investing)? 1:07:23 - Seth; In response to last week’s request to listeners, shares how he thinks TF should be best described as an important part of your portfolio 1:10:30 - Performance recap Subscribe on: