“The illusion has been created that there is an explanation for everything with the primary task to find
that explanation.”
famed trader
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21 Monitors?
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Trends in motion will stay in motion, they will persist, until they reverse.
Everything Flows
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Be Like Lee
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Since 1974
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Larry Hite
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No Risk No Reward
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Make Your Bets
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Food for Thought
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Inefficient Markets Are Opportunity
“An ancient tale with no empirical support.” Eugene Fama The Father of Modern Finance
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Price, Price, Price
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Bonds
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Crude Oil
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Sugar
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Capture the Middle Meat
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Start with Small Bets
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Heuristic: Run Profits & Cut Losses
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1%
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Trade Everything: Mob Psychology
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Diversifying Across “Numbers”
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Swan(s)
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Unpredictable & Unannounced
Volatility, chaos, uncertainty, disorder.
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Bell Curve Professors
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Bobby Jones
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Bubba Watson: Perfect Shots?
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Process v. Outcome 1
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Process v. Outcome 2
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Very Different Ways of Thinking
Trending Non-Trending Time of market turbulence Time of market quiet
Divergence from mean Convergence to mean
Period of disequilibrium Period of equilibrium
Structured price memory Random price action Mean-fleeing behavior Mean-reverting behavior
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1. What market do you buy or sell at any time? 2. How much of a market do you buy or sell at any time? 3. When do you buy or sell a market? 4. When do you get out of a losing position? 5. When do you get out of a winning position?
5 Take Aways
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No Country for [Blank] Men
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This Kid Is Already Toast
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Presentation by: Michael W. Covel
President, Trend Following™
For More Information: +1 (800) 480-0581 (Toll Free)