Apr 10, 2013
My guest today is Jerry Parker. In 1983, Parker was accepted
into the Turtle Program, a select investment training program
developed by successful Chicago portfolio manager Richard Dennis.
He appears in Covel's "The Complete TurtleTrader" and has been the
most successful TurtleTrader. Parker founded Chesapeake Capital
Corporation, a global investment manager headquartered in Richmond,
Virginia, in 1988.
The topic is Trend Following.
In this episode of Trend Following Radio we discuss:
- Mistake of combining different strategies with trend following,
and the importance of having a concentrated strategy that you can
- How discretionary moves can get in the way of your system, and
- The psychological effect of following a trend following
strategy for decades
- The idea of going for positive expected value over what's least
- Why Parker doesn't like to use the term "managed futures", and
why it doesn't really tell the story of trend followers
- Trend followers performing well at different points in time
compared to long-only
- Using trend following as another strategy for investors who
only invest through a long-only value-based system
- The importance of not letting your views on politics and
society influence your trading, and maintaining a systematic and
- The growth of news media since 1984, information overflow,
limiting your variables, and using price as your primary
- How Parker has learned over the years to deal with drawdowns,
loving your losses, and the importance the Turtle program played in
his education on drawdowns
- Why governments are the ultimate counter-trend traders
- Why buy and hold is not a good place to be even if people are
saying it's turned around
- Parker's stock-only trend following program, and why the
diversified program will do better than the stock-only system
- Leverage as a tool
I’m MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I’m
proud to have delivered 10+ million podcast listens since 2012.
Investments, economics, psychology, politics, decision-making,
human behavior, entrepreneurship and trend following are all
passionately explored and debated on my show.
To start? I’d like to give you a great piece of advice you can
use in your life and trading journey… cut your losses! You will
find much more about that philosophy here: https://www.trendfollowing.com/trend/
You can watch a free video here: https://www.trendfollowing.com/video/
Can’t get enough of this episode? You can choose from my
thousand plus episodes here: https://www.trendfollowing.com/podcast
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Hope you enjoy my never-ending podcast conversation!