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Ep. 367: Eric Crittenden Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Importance of Understanding the Normal Distribution of Investment Returns

In 1997, when he was a senior in college, Mark O'Mara designed a system that would buy stocks when they hit 52 week lows. He says it made reasonable double digit returns with commensurate drawdowns about the same as the compounded growth rate. The real life results closely tracked the simulated results on an out of sample basis. "The right tail is that much bigger than what academic models suggest"

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