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Diversified Trend Trading Approach

  • #4,581
  • Dec 15, 2021 6:06pm Dec 15, 2021 6:06pm
How to Invest with the Best: The Case for Increasing Allocations towards Globally Diversified Systematic Trend Following CTAs

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https://www.toptradersunplugged.com/...ollowing-ctas/

This research piece is a collaboration between Niels and myself where we provide a method that seeks to compile TF Programs into a portfolio through allocation that offers superior underlying geometry for wealth building.

We monitor this selection method in our monthly reports so you can track how the method copes with an uncertain future.

Cheers

Rich
  • #4,582
  • Dec 15, 2021 6:10pm Dec 15, 2021 6:10pm
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https://www.toptradersunplugged.com/...-october-2021/

We have finally launched our monthly blog series on TTU which evaluates the performance of the TF Industry on an ongoing basis. The link takes you to the latest October Report. More reports will be released shortly for the entire 2021 year.

This performance report provides a basis for you to benchmark your performance results against the top FM"s in the world that practice our philosophy of Diversified Systematic Trend Following.

Bench-marking is so important as it provides a basis to establish realistic expectations and also see how correlated you are with these FM's in your method. If the industry faces a tough month, then we would expect to also experience a tough month, but when the industry flourishes, we would also expect to flourish. If your results go against the industry trend then that leads to a query ......why? Are you as diversified as you could be? Are you too over-leveraged? Are you over-trading?
All these questions arise when you conduct benchmark checks and it is really helpful in making you better traders.

The monthly report:

  1. Gives a recap of major economic news that influenced Trend Following for the month;
  2. Identifies the top performing FM's each month using a variety of different performance metrics; and
  3. Monitors the state of our Serenity Allocation Programs.

We hope you enjoy these monthly reports.

Cheers

Rich

  • #4,583
  • Dec 25, 2021 1:26am Dec 25, 2021 1:26am
Christmas Epic Part 1 "Trend Following & Nothing" is out. Happy Christmas everyone :-)

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https://top-traders-unplugged.captivate.fm/listen
  • #4,584
  • Jan 2, 2022 4:02pm Jan 2, 2022 4:02pm
Six Trend Followers entered the arena.....how many survived? Part 2 concludes the joust.

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https://www.toptradersunplugged.com/...uary-2nd-2022/

Have a great 2022 :-)

Cheers

Rich
  • #4,585
  • Jan 4, 2022 10:41am Jan 4, 2022 10:41am
Hi Rich! love all your material, and I have been poking around you education website. I do have one question for you and I apologize if this has been answered somewhere in this thread. Being that you are in Australia and have access to CFD's how do Americans like myself achieve the same level of diversification that someone with CFD access would achieve?
  • #4,586
  • Jan 5, 2022 10:06pm Jan 5, 2022 10:06pm
Quoting MNTrader
Hi Rich! love all your material, and I have been poking around you education website. I do have one question for you and I apologize if this has been answered somewhere in this thread. Being that you are in Australia and have access to CFD's how do Americans like myself achieve the same level of diversification that someone with CFD access would achieve?
See if you can open an offshore account with a CFD broker such as FXPro or something similar. Ideally you are after an offshore broker that accepts US citizens but their operations are domiciled in a country where current restrictions don't apply.

Check that they are not a dodgy outfit and have a pretty good reputation as counter-party risk can be an issue.

You are looking for an offshore broker that accepts US citizens and:
1. Has a diverse product range across asset classes such as commodities, metals, forex, some ETF's etc;
2. Offers good leverage (the higher the better as this assists diversification); and
3. Operates micro accounts so that you can achieve max diversification with smaller capital accounts.

If all else fails, then you could consider trading futures but your ability to diversify is lessened as your capital requirements will be higher. You could then use a US Futures broker such as Interactive Brokers and a platform such as Trading Blox or Tradestation.

Cheers

Rich
  • #4,587
  • Jan 6, 2022 9:02pm Jan 6, 2022 9:02pm
Trend Following Performance Report - November 2021

When Correlations Turned to One

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https://atstradingsolutions.com/tren...e-dreaded-one/
  • #4,588
  • Jan 6, 2022 11:51pm Jan 6, 2022 11:51pm
Inserted Video
  • #4,589
  • Jan 17, 2022 2:56am Jan 17, 2022 2:56am
Trend Following Performance Report - December 2021

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https://atstradingsolutions.com/tren...ack-in-action/
  • #4,590
  • Edited 11:16pm Jan 23, 2022 4:39pm | Edited 11:16pm
I really enjoyed this discussion with Niels. Drawing from wide disciplines we let all the guns of our battleships rip to help understand why we 'hunt for Outliers'.

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Click on the link

https://www.toptradersunplugged.com/...ary-23rd-2021/

Couple of things I was unhappy with in my explanations as my brain sometimes sporadically hiccups with strange nonsensical things. :
1) Change the term 'Square Root Law' with the term 'Square Law'....I had square signs floating through my brain as I was attempting to explain it.
2) Change the reference to 'thinking of 'liquid water' at zero degrees. I meant to say do not think of a system as occupying a state around an equilibrium (eg. room temp). Phase shifts clearly occur at zero degrees and 100 degrees. The intent was to suggest that we need to avoid thinking of a system as oscillating about an 'equilibrium state' and rather think of it as occupying a 'state' that is much closer to a 'critical' point of phase change. It carries embodied energy from the inter-relationships that allows it to be perched at a higher energy state (think of Potential energy).

There may be more hiccups...so I apologise :-)
  • #4,591
  • Edited 3:25am Jan 24, 2022 3:04am | Edited 3:25am
Hello C,

I have a challenge I think you are best equipped to solve if you do not mind.

It is the simple question of obfuscating trades (lot sizes, types, timing, tp's, sl's, price levels etc.) from a market facilitator.

My research led me to Barclays BARX & Currenex, but I'm not even sure if they solve such.

I wonder how the hedge funds do this, like...



How does Renaissance Tech hide/prevent their market facilitators (I'm guessing major banks) hoping on their trades ?

How do these guys protect their strategies?

and how can a retail trader do the same?


P.S: Would have preferred to discuss in private as this might be off topic & to prevent 'noise' from other FF members but you seem unreachable. Cheers.
  • #4,592
  • Jan 24, 2022 6:09pm Jan 24, 2022 6:09pm
Hi S :-)

Mate....in the world I inhabit (medium to long term Trend Following) I am less worried about broker shenanigans and front running orders as the impacts (if they occur) are not material to the edge I am trying to extract from the market. This also is supported by the views of the Professional FM's that I try to mimic.

Of course the impact is far more material if you trade the short term, and dependent on jurisdictional regulation you might need to explore methods such as the use of 'Dark Pools' to process orders for you which is a service to FM's that want to trade in accepted 'blocks'....or if you are a non-disclosing entry....the use of Special Purpose Vehicles to create an arm's length distance away from the order initiator.

I am not aware of any other techniques that we could look at and for the retail trader....the options are very limited but this is one reason why I like targeting 'Outliers' as their impact is so material to the PL that execution issues are far less important to me.

I will raise the topic in some of the forums I inhabit with some professional FM's and see if they come up with any other guidance that I can share here. :-)

Cheers

Rich
  • #4,593
  • Jan 25, 2022 1:19pm Jan 25, 2022 1:19pm
Quoting Copernicus
Hi S :-) Mate....in the world I inhabit (medium to long term Trend Following) I am less worried about broker shenanigans and front running orders as the impacts (if they occur) are not material to the edge I am trying to extract from the market. This also is supported by the views of the Professional FM's that I try to mimic. Of course the impact is far more material if you trade the short term, and dependent on jurisdictional regulation you might need to explore methods such as the use of 'Dark Pools' to process orders for you which is a service...
Thanks Rich, I really appreciate your kind gesture, will research the idea's you've given me here.

See, I'm approaching the markets on all fronts, I trade a discretionary style,

Also been studying your diversification style and will be trading it automated one day (totally sold on it),

Been working on a quantitative approach for some years too,

You could say I've got an egg in many baskets

Thanks for this thread Rich, it was a real eye opener.
  • #4,594
  • Jan 25, 2022 10:36pm Jan 25, 2022 10:36pm
Quoting sinqua
{quote} Thanks Rich, I really appreciate your kind gesture, will research the idea's you've given me here. See, I'm approaching the markets on all fronts, I trade a discretionary style, Also been studying your diversification style and will be trading it automated one day (totally sold on it), Been working on a quantitative approach for some years too, You could say I've got an egg in many baskets Thanks for this thread Rich, it was a real eye opener.
Cheers S :-)
  • #4,595
  • Jan 25, 2022 10:36pm Jan 25, 2022 10:36pm
In this podcast episode and Blog Post Niels and Rich discuss Outliers and processes that can be used to hunt for them.

#Outliers,#ClassicTrendFollowing

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https://atstradingsolutions.com/unde...e-of-outliers/
  • #4,596
  • Feb 15, 2022 7:22am Feb 15, 2022 7:22am
Is Winter Coming?

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https://atstradingsolutions.com/tren...winter-coming/
  • #4,597
  • Feb 27, 2022 10:40pm Feb 27, 2022 10:40pm
This episode was full of excitement. While having a spirited discussion, the waters from a major South East Queensland flooding event were lapping around my ankles.

Our hearts go out to the people of Ukraine in this most unsettling time.

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https://www.toptradersunplugged.com/...ary-27th-2022/
  • #4,598
  • Mar 1, 2022 11:11pm Mar 1, 2022 11:11pm
The Battle Between Competing Models

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https://atstradingsolutions.com/the-...en-the-models/
  • #4,599
  • Mar 21, 2022 9:34pm Mar 21, 2022 9:34pm
It was a lot of fun last night where I presented at the Sydney Chapter of the Australian Technical Analysts Association (ATAA) the merits of Classical Trend Following. Many thanks for the warm reception to all attendees.

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https://atstradingsolutions.com/mimi...end-followers/
  • #4,600
  • Mar 22, 2022 12:07am Mar 22, 2022 12:07am
Never say die to a trend follower.

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https://atstradingsolutions.com/tren...rend-follower/
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