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Ep. 13: Mark Melin Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Importance of Diversification in a Portfolio

The standard deviation penalizes trend followers for upside volatility. So the concept is we want to just have a piece of portfolio that doesn't matter what the stock market is doing. And that's real diversification. During times of crisis, most assets move to one on the correlation chart,. meaning they all travel in the same direction.

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