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Ep. 330: Nigol Koulajian Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Benefits of Trend Following Trading Strategies in Equity Market Corrections

The ability to provide returns during equity correction comes from short-term trading which is more positively convex or from trading shorts. Large CTA's that have provided the best returns in the last 10 years based on risk will not be able to providing returns during equity corrections, it will take them two weeks, three weeks, one month, two month, three months to reverse and go short if there's a type of fast reversal. So effectively when equities reverse, you have to date the negative beta to equities is coming from fixed income.

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