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Ep. 399: Brett Steenbarger Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Benefits of a Smoother Curve

Over the last 15 years, we've had two 50% drawdowns in the S&P. The idea of a smoother curve is really all about diverse education, portfolio construction and combining different approaches to markets for better returns. For instance, if you think about returns as being generated by certain factors, trend or momentum could be one factor,. value could be onefactor, carry could be another factor. Then you can combine investments or trades that express those different factors and that harvest returns from those factors in a smoother way than if you were trading one strategy individually.

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