SI148: The Importance of Capturing A Few Large Trends ft. Jerry Parker

Published: July 11, 2021, 4:30 p.m.

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Jerry Parker returns today to discuss why margin perhaps isn\\u2019t as important as people perceive it to be, the resurgence of \\u2018classical\\u2019 Trend Following, the importance of having a low Sharpe ratio, an update on Jerry\\u2019s Bitcoin positioning, the drawbacks of trading a single, longer-term timeframe, how European CTAs successfully compete with American CTAs, the best methods for measuring open risk, and why capturing the fewer large trends may be more important than the many small trends.

Also check out my interview with Turtle Trading legendary mentor Richard Dennis here.

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IT\\u2019s TRUE ? \\u2013 most CIO\\u2019s read 50+ books each year \\u2013 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 \\u201cThe Many Flavors of Trend Following\\u201d here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

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Episode TimeStamps:

00:00 - Intro

01:28 - A huge thank you to our listeners for leaving 5-star reviews in iTunes

02:02 - Macro recap from Niels

12:07 - Q1; Omar: Why isn\\u2019t Trend Following more popular as a strategy?

31:37 - Q2 & Q3, Q4; John: What percentage of margin to equity was Jerry using during his Turtle Trading days? What kind of margin levels does Jerry use today at Chesapeake? How do you define and differentiate between \\u2018profit factors\\u2019?

40:01 - Q5; Mark: What look back periods do you tend to prefer?

47:27 - Deep and fast drawdowns versus longer-lasting, shallower drawdowns 

50:48 - Adjusting your trading universe by recent performance

58:11 - How newer money managers can differentiate themselves from their competitors

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