1 hr 5 min

SI154: Defining 'Outliers' from a Trend Follower's Perspective ft Richard Brennan Top Traders Unplugged

    • Investing

Richard Brennan joins us today to discuss the current global risk factors that could cause a large liquidity event, what the term ‘outlier’ really means from a Trend Follower’s perspective, the role of currencies in a Trend Following portfolio, the point at which diversification can end up diluting returns, whether different asset classes should be traded on different timeframes, some thoughts on pyramiding, and defining ‘non-linearity’ when discussing Trend Following models.
In this episode, we discuss:
The increasing global risks that could cause large market selloffs
How a Trend Following trader thinks about 'outliers'
The role of currency pairs in a Trend Following system
Diversification versus 'Di-worse-ification'
Whether to use different timeframes for different asset classes
Thoughts on 'pyramiding' in and out of positions
Rich's explanation of the term 'non-linearity squared'
Follow Niels on https://twitter.com/toptraderslive (Twitter), https://www.linkedin.com/in/nielskaastruplarsen (LinkedIn), https://www.youtube.com/user/toptraderslive (YouTube) or via the https://www.toptradersunplugged.com/ (TTU website).
Follow Richard on https://twitter.com/@RichB118 (Twitter).
IT’s TRUE 👀 – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written http://bit.ly/36bzny2%22%20%5Ct%20%22_blank (here).
And you can get a free copy of my latest book “The Many Flavors of Trend Following” http://www.toptradersunplugged.com/book%22%20%5Ct%20%22_blank (here).
Learn more about the Trend Barometer https://www.toptradersunplugged.com/resources/market-trends/%22%20%5Ct%20%22_blank (here).
Send your questions to info@toptradersunplugged.com
And please share this episode with a like-minded friend and leave an honest rating and review on https://itunes.apple.com/us/podcast/top-traders-unplugged-niels/id888420325?mt=2%22%20%5Ct%20%22_blank (iTunes) so more people can discover the podcast.
Episode TimeStamps:
00:00 – Intro
02:09 – A huge thank you to listeners of the show for leaving your 5-star reviews on iTunes
02:31 – Macro recap from Niels
11:17 – Weekly review of performance
17:10 – Q1; Adam: At what point does diversification become dilution?
22:32 – Q2; Mathew: Have there ever been any years where currencies were your top performers?
32:09 – What the term ‘outlier’ really means from a Trend Follower’s point of view, as well as some thoughts on the terms ’non-linearity squared' and ‘pyramiding’
01:02:36 – Benchmark performance update

Richard Brennan joins us today to discuss the current global risk factors that could cause a large liquidity event, what the term ‘outlier’ really means from a Trend Follower’s perspective, the role of currencies in a Trend Following portfolio, the point at which diversification can end up diluting returns, whether different asset classes should be traded on different timeframes, some thoughts on pyramiding, and defining ‘non-linearity’ when discussing Trend Following models.
In this episode, we discuss:
The increasing global risks that could cause large market selloffs
How a Trend Following trader thinks about 'outliers'
The role of currency pairs in a Trend Following system
Diversification versus 'Di-worse-ification'
Whether to use different timeframes for different asset classes
Thoughts on 'pyramiding' in and out of positions
Rich's explanation of the term 'non-linearity squared'
Follow Niels on https://twitter.com/toptraderslive (Twitter), https://www.linkedin.com/in/nielskaastruplarsen (LinkedIn), https://www.youtube.com/user/toptraderslive (YouTube) or via the https://www.toptradersunplugged.com/ (TTU website).
Follow Richard on https://twitter.com/@RichB118 (Twitter).
IT’s TRUE 👀 – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written http://bit.ly/36bzny2%22%20%5Ct%20%22_blank (here).
And you can get a free copy of my latest book “The Many Flavors of Trend Following” http://www.toptradersunplugged.com/book%22%20%5Ct%20%22_blank (here).
Learn more about the Trend Barometer https://www.toptradersunplugged.com/resources/market-trends/%22%20%5Ct%20%22_blank (here).
Send your questions to info@toptradersunplugged.com
And please share this episode with a like-minded friend and leave an honest rating and review on https://itunes.apple.com/us/podcast/top-traders-unplugged-niels/id888420325?mt=2%22%20%5Ct%20%22_blank (iTunes) so more people can discover the podcast.
Episode TimeStamps:
00:00 – Intro
02:09 – A huge thank you to listeners of the show for leaving your 5-star reviews on iTunes
02:31 – Macro recap from Niels
11:17 – Weekly review of performance
17:10 – Q1; Adam: At what point does diversification become dilution?
22:32 – Q2; Mathew: Have there ever been any years where currencies were your top performers?
32:09 – What the term ‘outlier’ really means from a Trend Follower’s point of view, as well as some thoughts on the terms ’non-linearity squared' and ‘pyramiding’
01:02:36 – Benchmark performance update

1 hr 5 min