SI217: Finding the Optimal Trend Following Allocation ft. Rob Carver

Published: Nov. 6, 2022, 6 a.m.

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Today, Rob Carver joins us for our weekly conversation on Trend Following, where we also address this week\'s press conference held by Chairman Powell. We discuss the most optimal time period for trend following and how trend following differ from short-term trading. Then we explain the challenges in the UCITS space and how regulation affects these products, and why it is important to correctly distinguish asset classes and trading strategies from each other. We also discuss Rob\\u2019s approach to building mean reversion systems, the importance of analyzing trading costs and if it is worth learning how to trade futures, if you have a small account. Lastly, we discuss hedge fund replication and how Rob approaches it, and how to decide, how much you should allocate to Trend Following and much more.

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Episode TimeStamps:

00:00 - Intro

02:58 - The biggest takeaways from the week?

11:36 - Industry performance update

13:27 - Status on Rob\\u2019s book

14:38 - Q1, Simon: What is the shortest term that Rob has looked at in trend following / momentum?

25:26 - Q2, Matthew: Relationship between UCITS funds\'s lower vol and Trend Following allocation? & Advice for small investors

32:20 - Comment, Mark: Confusing asset classes and trading strategies

39:22 - Q3, Toby: About building mean reversing systems

40:58 - Q4, Zach: How to approach holding periods and rolling costs?

43:22 - Q5, Anis: Cash equities vs. futures for trend...'