Our next guest takes a mechanical, long-term trend approach to trading to a new level, and you’ll find out why he thinks it is the better option in this episode.
He started Covenant Capital with his business partner in 1999 and has grown it into a profitable boutique firm.
But in early 2002 after they ended the previous year down 20%, they really had to grind it out and stick to their guns which ultimately paid off in a big way.
You can check out the all of the notes and full transcript of this episode right here:
In This Episode, You’ll Learn:
How Scot started his firm, doing the testing by hand.
The difference between a discretionary model and a mechanical model and why Scot chose a mechanical one.
How narrative bias can affect a trader’s decisions.
What made Scot believe in his model and stick to his guns.
The pitfalls of investing in shorter term models and not allowing managers to see a full cycles with markets.
Why most allocators and investors are chasing 24-month returns on stocks and why that may not be the right approach.
About different types of CTA firms, including boutiques, battleships, emerging, and experimental.
What to look for in a CTA.
How to get investors to share the long-term horizon with his firm when certain markets do very well in the short term.
Follow us on social media:
In contrast to registered investment companies, which must always be organized within the United States, private funds are often organized in offshore jurisdictions for tax, regulatory and marketing reasons.
Explore different types of mutual funds.
Make confident investment decisions by getting to know which funds may be right for you.
Build a portfolio that can help you meet your goals.
Whether you want to do the research yourself, get some recommendations online, or talk directly with a financial advisor, we can help.
Saving for retirement. Investing for other goals. Getting retirement income. Saving for college.
Build a customized portfolio.
Understanding how to put different types of investments to work for you is essential.
All investing is subject to risk, including the possible loss of the money you invest. Diversification does not ensure a profit or protect against a loss.
Vanguard provides services to the Vanguard funds and ETFs at cost.
Different types of fund.
Active vs passive.
Actively managed funds.