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“Ah yes, the axioms…”

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Ah yes, the axioms.

Stumbled upon original copy in Kowloon, Hong Kong bookshop, early 2003. Still re-read it every now and then.

Good find, well done!

Gary P.

Thanks.


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Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

“I primarily focus on daily and weekly charts looking at moving averages and supply and demand…”

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Hey Michael,

As of right now my biggest challenge is portfolio construction, I understand trend following is trading either a global portfolio or your home country markets. However, when it comes to incorporating certain asset classes such as equites there’s a a lot to choose from so by any chance could you give an overview of how I should go about constructing a portfolio?

Thanks,
Dave

There is a process. First it’s about choosing the type of instrument you will use to trade all markets. Then correlation plays a role. Then updates play a role. I assist all of my clients with this process via my Flagship training. What is your exact strategy and time frame now?

Thank you for the response, I primarily focus on daily and weekly charts looking at moving averages and supply and demand/support and resistance zones

Support and resistance is not trend following.


How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

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Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

“What indicators do you use to define your trends, and what signal do you use to enter…”

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Michael,

Started listening to your podcast and of course I’ve heard of you before.

When it comes to reading, my favorite method is “darvas box” trading following Nicholas Darvas’ method looking for stocks that double in a year. I’ve actually written code on think or swim to do this.

In a way, Darvas box trading is a trend trading method. A fast shooting trend straight up. The problem is, true Darvas box trading doesn’t give many candidates per year (and most of what you find online from people “teaching” the method is BS, a mutated form of William O’Niel’s limited CANSLIM method or worse).

My question to you is simply this: what indicators do you use to define your trends, and what signal do you use to enter? Such as this… finding stocks with the 10,20,50 & 200 day moving averages layered totally bullish or totally bearish and thing when a 5 day crosses above the 10 day moving average, etc. I’m simply looking for the basics of your methodology. I know the jargon already (like moving averages, MACD, etc).

Clint H.

Price action. Breakouts.


How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

Trend Following Podcast Guests
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Research
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Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

“Thank you for being real, and sharing the treasure chest of trend following…”

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Hi Michael,

I would just like to say thank you for being real, and sharing the treasure chest of trend following with your audience through your books!

I’ve reached out to you 4-5 years ago, when I was just starting out and had very little to invest. You didn’t reply and that was probably a right thing to do. I’ve had to roll up my sleeves and was able to get to a point where I’m now up 86% YTD, and my portfolio size is growing enough to be able to trade most micro futures contracts and size them properly and ETF’s. I’ve also created a https://bucktester.com/ in the free time, it’s not the best and the greatest in terms of backtesting, but it’s good enough for me to verify what I’m doing, so I published it and put a small price tag on that, just in case someone finds it useful.

Again hello from Slovakia, and thank you so much. If there’s any small way I can help with something please let me know!

Best Regards,
Sveto K.

Thanks for reaching out, but I did respond back then. As you now know as I sent you the screen shot!


How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

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Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.

Ep. 1282: Tim Pickering Interview with Michael Covel on Trend Following Radio

Tim Pickering
Tim Pickering

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My guest today is Tim Pickering, founder, CIO and president of Auspice Capital Advisors. Tim leads strategic decision making and the vision for Auspice’s diverse suite of active and passive systematic trend following (CTA) and commodity strategies. Prior to forming Auspice, Tim was VP of Options Trading at Shell Trading North America. He is also the Chair of Finance Advisory Council of Haskayne School of Business.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

  • Challenges in entrepreneurship
  • Trend following and replication
  • ETFs as a delivery mechanism
  • Risk management
  • Fee reduction and alpha generation
  • Performance comparison in various investment strategies

Mentions & Resources:

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Ep. 1281: Trend Following Is Superior with Michael Covel on Trend Following Radio

Episode 1281
Episode 1281

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Please enjoy my monologue Trend Following Is Superior with Michael Covel on Trend Following Radio.

Listen to this episode:

Want to learn more Trend Following? Watch my video here.

“Why do people teach and market all that support/resistance, trendlines, candlesticks and…”

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Hi Michael, I am Vibhour from India. I wanted to tell you that your work has inspired me a lot and trend following is indeed the best strategy to follow which requires no predictions and just rules. I wanted to tell you that I am in my path to become a professional trader and the last 2 years I have spent thousands of dollars to learn trading. I have learned a lot about price action, candlesticks, some other price patterns and couple of indicators too but when I listen to you I think that I have spent a lot on learning things which are more complex than simple trend following. I want to be part of your flagship program and soon I will be. I just think that I’ve already learned so much in past 2 years and that has been working for me fine, but I want better performance and that thought of learning more trading makes me feel a bit overwhelmed. I think the more I learn, the more I will confuse myself. Instead of that I think I should improve what I already know. Can you please guide me on that thought? I’ve worked hard on learning but still am not very much profitable. As it’s just not very much suitable to my mindset to analyse very single candle and use my discretion to trade. That’s why your way of teaching attracted me. Also if I have around 20,000 dollars of trading account would that much capital be sufficient to do trend following?

What have you learned exactly? Time frames you are trading? Candlesticks, for example, are not trend following. Look forward to helping.

I have learned to identify setups and then to analyse the probability of those setups. This is not any kind of intraday trading but more of a swing to positional trading. There are proper rules too but I’ll say there is a lot of discretion involved to identify those setups. I mainly trade stocks and I have learned to choose those stocks according to overall market structure and the best performing sector in line with the market. Then I’ll choose top performing stocks within those sectors, and find those setups. Mainly there are pull back setups like support/resistance areas and other candle patterns and moving averages to enter those stocks. I hold them as long as there is any reversal price pattern or sometimes I have a target in mind. The thing is there is a lot of analysis involved. Which sometime leads to second guessing. If I talk about time frame, I analyse the stocks on weekly and monthly time frame and make an entry on daily.

Definitely not trend following!

Ok got it! I could make changes in my trading then. I am looking for trend following systems that can help me to be disciplined without second guessing and compound my capital overtime. Thanks for helping me out.

My books. My podcast. My flagship product. I help many clients.

I have been reading your books and I guess only one book is left, TF masters vol2. I really loved all of your books and I see now where I need to change my trading approach. I am going to be a part of your Flagship program most probably within a month or so. Like I said, I have spent thousands of dollars learning technical analysis which now I realise was predictive TA and what we do in Trend following is reactive TA. I just have 1 question, if all we needed was simple trend following systems, why do people teach and market all that support/resistance, trendlines, candlesticks and discretionary trading. I mean I have spent 10X more money I am gonna invest in your flagship program to learn these things and still can’t figure out how to make proper use of them. Right now I am using a very simple trend following system, but I want to learn more and grow. So I will be purchasing your Flagship product really soon. Thank you so much for making trading so simple and all the information about trend following you have shared with the world.

Ready to help you!


How can you move forward immediately to Trend Following profits? My books and my Flagship Course and Systems are trusted options by clients in 70+ countries.

Also jump in:

Trend Following Podcast Guests
Frequently Asked Questions
Performance
Research
Markets to Trade
Crisis Times
Trading Technology
About Us

Trend Following is for beginners, students and pros in all countries. This is not day trading 5-minute bars, prediction or analyzing fundamentals–it’s Trend Following.