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Bestselling author Michael Covel is the host of Trend Following Radio with 9.5+ million listens. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trading -- all passionately explored and debated. Guests include Nobel Prize winners: Robert Aumann, Angus Deaton, Daniel Kahneman, Oliver Hart, Harry Markowitz & Vernon Smith. More guests: Jack Canfield, Howard Marks, James Altucher, Dan Ariely, Jean-Philippe Bouchaud, Kathleen Eisenhardt, Marc Faber, Tim Ferriss, Jason Fried, Gerd Gigerenzer, Larry Hite, Sally Hogshead, Ryan Holiday, Jack Horner, Ewan Kirk, Steven Kotler, Michael Mauboussin, Tucker Max, Barry Ritholtz, Jim Rogers, Jack Schwager, Ed Seykota, Philip Tetlock & Walter Williams.

Praise:

“Your questions were excellent questions. I enjoyed this very much.”

--Vernon Smith, Nobel Prize in Economics

“You’ve surrounded yourself with one of the most advanced group of mentors possible…The people on your podcasts, and people in your life, all are people with strong opinions, all people that make you think and make you grow. You just have some kind of an affinity for people like that, and that’s part of what makes you good at what you do.”

--Ed Seykota

“Michael Covel’s podcast has had over [9.5] million listeners and he’s completed [900+] episodes. He’s probably the most established podcaster on this list—and it shows. Mr. Covel’s podcast is great for those looking for alternative views on the market, those who are tired of hearing the same old stories told on CBNC and other traditional outlets. This is highly recommended if you are looking to expand your mind in investing. Mr. Covel has had some incredible guests, to include multiple Nobel Prize winners and world-famous investors. One of my favorite episodes was when Mr. Covel interviewed Annie Duke, a former professional poker player who has some incredible insights on decision making. Mr. Covel always has me thinking and Annie Duke only amplified my brain-wave activity.”

--Wall Street Journal

Jul 12, 2012

Michael Covel talks to Dave Stendahl of Capitalogix. Stendahl's world is 100% systematic, and he has been involved in conceptualizing and thinking up systematic approaches to trading the market for decades. But what is a system? Stendahl's explanation appeals both to the average person and to the seasoned trader. Stendahl's approach is that a system should have as few moving parts as possible; it should be simple enough to be explained on the back of a cocktail napkin. Covel and Stendahl make an analogy to cars, and how you can easily fix a simpler car in your garage as opposed to a complex Lexus. Stendahl explains that everyone is using a system in one way or another: every time you make a decision to buy or liquidate, whether it's based on a real system or based on advice from someone on the television, it's systematic in some regard. If you can talk it, you should be able to quantify it. If you can't quantify it, it might not really be there. Stendahl also talks about his beginnings, collaborating with his father in the mid 1970's. This was his exposure to the investment arena. It wasn't until college that he started taking "technical" things more seriously. When he was introduced to technical analysis, and had the lightbulb moment, he realized he could make money based off of something other than fundamentals. Interestingly, this was rooted in Stendahl's dyslexia. He turned this disadvantage into an advantage, and was forced to find his own solutions: to learn specifically how to automate everything from start to finish. This allowed him to look at numbers and trading from another light, and this approach ended up being very profitable for him. Covel also asks Stendahl about Ray Dalio of Bridgewater, who says that he is 100% systematic, but doesn't use any technical information. Stendahl explains that Dalio says he's looking at fundamentals from all these different markets, and this requires a huge amount of work. For Stendahl, he simply has one major input. Making price action systematic vs. taking in a massive number of fundamentals systematically. In the early 90's, Stendahl tried to work with fundamentals, but he found that the numbers were always changing, the data was slow, and given the amount of inputs, it would be much more complex and slow to put a good systematic program together. Stendahl chose to take the easier and more robust route, but he was very sophisticated in the way his systems were designed. Your system doesn't have to be complex to work. Sometimes the best system can be only four lines of code. Covel and Stendahl also discuss position sizing and money management, and how you can approach this systematically. Free Dvd? www.trendfollowing.com/win