Ep. 750: Eclectic Mega Episode with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
Thorpe's Blackjack System
Shannon Thorpe was a mathematician but he would keep going to Las Vegas to play cards and he regarded it as his personal ATM machine because he could make money so easily. He decided why not the stock market, this was something that was actually mentioned as a possible application in John Kelly's original paper so he started looking into that. By applying this formula basically Thorpe found that most warrants were really overpriced they were almost like carnival games costing way too much based on what you could win and your chance of winning It kind of snowballed from there friends began giving him money to invest he kept you know compounding what he made and eventually he started a hedge fund called Princeton Newport Partners
Play episode from 30:10
Transcript
