Trend Following With Michael Covel

My guest today is Francisco Vaca. Vaca can be called a second generation turtle trader. He worked with Richard Dennis at C & D Commodities, and for the last 15 years has been closely associated with Paul Rabar. He is now the Co-Chief Investment Officer at Rabar Market Research. Before he became a trader, Vaca was a particle physicist and worked at the famous Fermi lab. This is not an insignificant fact, as his background in mathematics and statistics became very useful in his career as a trader. The topic is Trend Following. In this episode of Trend Following Radio we discuss: The importance of distinguishing between long term and short term track records "Alpha" and "beta" trading strategies How the holding period length affects the risk-reward profile and return streaks The benefits of diversification across different holding times Using high frequency trading technology in long term trend following How correlations are often misinterpreted Knowing the limitations of your tools Jump in! --- I'm MICHAE