We’re joined today by Rob Carver to discuss the process of selecting single stocks for a Trend Following system, Rob’s holy trinity of security selection, the JP Morgan-backed fund making huge bets, via options, on the market remaining quiet, the knock-on effects from funds who make large, risky bets, the sweet-spot for average holding periods in a Trend Following system, ‘caveman-style’ Trend Following versus scaling in and out of positions, how to hedge against inflation, how Trend Following historically has performed really well in rising interest-rate environments, and thoughts on Tesla’s recent earnings, a lot of which were from government subsidies and selling bitcoin.
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In this episode, we discuss:
Which stocks to select for a profitable Trend Following system
Rob's 'Holy Trinity' for selecting securities
The ripple effects of large funds who make large and risky bets
The most profitable holding periods in Trend Following systems
'Caveman-style' Trend Following
How to hedge against inflation
Trend Following's success in rising interest-rate environments
Tesla's recent earnings

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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).
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 https://www.toptradersunplugged.com/Ultimate (here).
And you can get a free copy of my latest book “The Many Flavors of Trend Following” https://www.toptradersunplugged.com/flavor (here).
Learn more about the Trend Barometer https://www.toptradersunplugged.com/resources/market-trends/ (here).
Send your questions to info@toptradersunplugged.com
And please share this episode with a like-minded friend and leave an honest Rating & Review on https://www.toptradersunplugged.com/reviewttu (iTunes) or https://open.spotify.com/show/2OnOvLbIV3AttbFLxuoaBW (Spotify) so more people can discover the podcast.
Follow Rob on https://my.captivate.fm/@InvestingIdiocy (Twitter).
Episode TimeStamps:
00:00 - Intro
01:36 - Macro recap from Niels
04:27 - Weekly review of returns
09:38 - Discussion on Tesla’s recent earnings
25:13 - Q1; Matt via the https://www.speakpipe.com/ttuvoicemail (Top Traders Unplugged free voicemail service): How do you select single stocks as a Trend Follower?
35:02 - Q2; Alfred: Does backwardation lead to price rallies?
41:10 - The fund who are now nicknamed ‘Gamma Hammer’ for betting on tranquil markets
48:07 - Q3; Riccardo: What does Rob think about mean reversion strategies, and how they can be complimented with Trend Following? What are your thoughts on Systematic Macro strategies, and how do they compare with Trend Following?
57:16 - Q4; Michael: How long would it take to convert a system made in Microsoft Excel, to Python?
01:00:20 - Q5; James: What do you think about exiting winning trades in stages, rather than at once?
01:06:08 - Hedging against inflation
01:11:06 - Benchmark performance update
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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:
1. eBooks that cover key topics that you need to know about
In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. https://www.toptradersunplugged.com/resources/ebooks/ (Click Here)
2. Daily Trend Barometer and Market Score
One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following...