Michael W. Covel - Trend Following

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An Attitude Adjustment

Presentation by:

Michael W. Covel President, Trend Following™

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Fundamentals Are Religion

“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)

+1 (702) 666-8579 (Direct)

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