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Ep. 911: Eric Crittenden Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Parallels Between Gambling, Sports Betting and Systematic Trading

Exporting futures is a way to express an opinion, set up an asymmetric bet and provide liquidity to commercial hedgers in their time of need. In return, theoretically, in my mind, you're entitled to a sustainable risk premium for doing that part. And if they lose on the trade to you, you win and they win as well. So that's a symbiotic, mutualistic type relationship between trend followers and hedgers. That's why it persists over time and why it's worked for 50 years.

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