SI183: Nickel Short Squeeze & Trend Following in an Unstable World ft. Jerry Parker

Published: March 12, 2022, 6:15 p.m.

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Jerry Parker joins me in today\\u2019s episode to discuss trend following as a robust guide to the markets in a world of instability and insecurity. We also discuss the recent short squeeze in nickel which has led to an unprecidented response from the LME, how to develop a trend following system, and what to do if you miss a breakout trade. We dive into when to trade index-based products vs. single stocks, how to manage trailing stops, and Jerry\'s decision to stop doing trend following research and rounding off our conversation with interesting and somewhat provocative tweets from Jerry.

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In this episode, we discuss:

  • Trend following and volatility in relation to the current situation in Ukraine
  • The recent short squeeze in nickel trading and the reaction from the LME
  • Tips and tricks to grow as a trend follower
  • How to develop a good trend following system
  • How to manage trailing stops
  • How Jerry managed his short Russian stock position
  • What Jerry will focus on as he stops doing Trend Following Research

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Episode TimeStamps:

00:00 - Intro

01:40 - Summary of the week

08:03 - What happened this week with nickel trading

14:53 - Q1, Josh: Any tips and tricks for Trend Following investing and ETFs?

31:57 - Q2, William: How do you react following a missed breakout?

37:11 - Q3, ABE: Is it wise to avoid Index-based products and how to trade CTA Index Futures? How do CTAs as an industry, become part of the financial zeitgeist going...'