SI157: How to Make Money & Survive in the Markets ft Jerry Parker

Today we are joined by Jerry Parker to discuss how shorter-term systems can be more susceptible to market noise, the importance of sticking with your system during different market environments, how major investment firms have consistently performed well by keeping Trend Following in their portfolios, some insights into Jerry’s approach to backtesting, the drawbacks of being labelled as a CTA, Jerry’s bold prediction that Trend Following firms will be the most popular type of investment fund in the future, how trading smaller during bad periods can set you up for success during favourable conditions, ensuring protection against cyber attacks, and why past correlations can’t always be relied upon. Also check out my interview with Turtle Trading legendary mentor Richard Dennis https://www.youtube.com/watch?v=94nUnXsYpLY (here). In this episode, we discuss: The case for longer-term strategies Not over-optimising strategies to adapt to every market condition How adding Trend Following to a portfolio increases its robustness Why Trend Following firms will be the number one choice among investors in the future How to prevent cyber attacks Why you can't always rely on past correlations to continue Follow Niels on https://twitter.com/toptraderslive (Twitter), https://www.linkedin.com/in/nielskaastruplarsen (LinkedIn), https://www.youtube.com/user/toptraderslive (YouTube) or via the https://www.toptradersunplugged.com/ (TTU website). Follow Jerry on Twitter. IT’s TRUE ???? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written http://bit.ly/36bzny2%22%20%5Ct%20%22_blank (here). And you can get a free copy of my latest book “The Many Flavors of Trend Following” http://www.toptradersunplugged.com/book%22%20%5Ct%20%22_blank (here). Learn more about the Trend Barometer https://www.toptradersunplugged.com/resources/market-trends/%22%20%5Ct%20%22_blank (here). Send your questions to info@toptradersunplugged.com And please share this episode with a like-minded friend and leave an honest rating & review on https://itunes.apple.com/us/podcast/top-traders-unplugged-niels/id888420325?mt=2%22%20%5Ct%20%22_blank (iTunes) so more people can discover the podcast. Episode TimeStamps: 00:00 - Intro 01:32 - A big thank you to our listeners for leaving 5-star reviews in iTunes 02:26 - Macro recap from Niels 04:43 - Weekly review of returns 15:55 - An insight into Jerry Parker’s approach to backtesting 23:06 - Jerry Parker’s thoughts on the challenges of starting a CTA business today and how to overcome them 32:35 - Thoughts on effective succession planning for CTAs, as well as some thoughts on staying safe from cyber attacks 37:41 - Q1; Sebastien: How do you approach currency hedging? 41:17 - How one simple rule can be more powerful than a group of complex rules 44:48 - How shorter-term systems can be susceptible to noise 47:54 - Why past correlations can’t always be relied upon 49:32 - Discussion on a recent TransTrend article on how to respond to extreme volatility in the markets, such as during the COVID-19 pandemic 56:34 - Jerry’s thoughts on system diversification 01:01:59 - Benchmark performance update

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