Ep. 400: Special Tom Basso Compilation Episode with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Psychology of Trend Following Returns
Investors don't invest on drawdowns because they can't deal with their own psychology, he says. He also argues that trend following strategies have made money over the long run. Tom: If you looked at a whole year of monthly returns and monthly types of indexes you should be almost able to predict what should have been the average CTA's returns for February. You could actually just judge mentally yourself right into it if you had the data but all these fancy people with all their doctorates and all their computers and staff don't seem to be able to figure that out.
Play episode from 01:00:38
Transcript
