SI156: The Case for Buying at All-Time Highs ft Moritz Seibert

Moritz Seibert joins us today to discuss the benefits of ‘system diversification’, the case for buying at all-time highs, how classical Trend Following is performing this year, the optimal amount of sample size for an effective backtest, the best ways to monitor risk levels, some tips for starting a new Trend Following business, some recommended backtesting software for retail traders, and how to navigate around your broker’s negative interest rates. In this episode, we discuss: Why diversifying among systems can be beneficial Why buying at all-time highs can be difficult, but very profitable Classical Trend Following's recent performance versus newer methods Some good measures for monitoring risk Some tips for starting a new business based around Trend Following investing Suitable backtesting software for retail investors How to approach negative interest rates with your broker 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 Moritz on https://twitter.com/moritzseibert (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 01:05 - A big thank you to our listeners who gave us a 5-star review on iTunes & Apple Podcasts 03:21 - Macro recap from Niels 05:38 - Weekly review of returns 18:36 - What Moritz looks for when analysing his backtests 26:42 - Q1 & Q2: Derek: What are the most important risk metrics you monitor? If you had to start your Trend Following business from scratch, what would you do differently and what would you keep the same? 41:32 - Q3; Joe: Should I prioritise stocks that are working their way out of a correction over stocks making new all time highs? 45:16 - Q4; James: Can you recommend a software with backtesting capabilities, suitable for retail investors?  47:10 - Q5; Sebastien: How do you deal with negative interest rates from your broker? 51:14 - Q6; Mikhail: Is it worth varying the lengths of time being backtested rather than just, for example, backtesting data over the last 50 years? 57:39 - Thoughts on Germany’s upcoming election and its possible effects on the markets 01:02:08 - Benchmark performance update

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