Ep. 674: Trend Following Mega Fifth Edition with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Trend Following in Financial Markets
The existence of trends is one of the most statistically significant anomalies in financial markets. Just looking at the trend on a long time scale is giving information on the future motion of the market. It really means that all public information is not included in the price right now. For me it's both an intellectual and commercial point of view of very interesting finding. Michael, you mentioned Fama and the Split Nobel Prize. Jean-Philippe: I would say that traders on aggregate using trends is probably the reason why trends are there in the first place.
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Transcript
