Trend Following: How Great Traders Make Millions in Up or Down Markets

3.7 avg rating
( 505 ratings by GoodReads )
 
9780136137184: Trend Following: How Great Traders Make Millions in Up or Down Markets

THE INVESTMENT STRATEGY THAT WORKS IN ALL MARKETS...WITH PROOF TO BACK UP THE PROMISES

  • Reveals the trading strategy that made John W. Henry rich enough to buy the Boston Red Sox.
  • Contains 50+ pages of easy-to-understand charts, actual results from top Trend Followers.
  • Shows how to apply trend following in your portfolio–one step at a time, in plain English.

“Trend Following will replace Market Wizards as the must-read bible for a new generation of traders.”

Jonathan Hoenig, Portfolio Manager, Capitalistpig Hedge Fund LLC/Fox News Contributor

 

“Michael Covel’s Trend Following: Essential.”

Ed Seykota, Trend Follower for 35 years and Original Market Wizard

 

“Investment books that have a lasting appeal offer insight that resonates with a large number of investors. We believe Michael Covel’s Trend Following will be such a book.”

Richard E. Cripps, Legg Mason Chief Market Strategist

 

“A mandatory reference for anyone serious about alternative investments.”

Jon Sundt, President and CEO of Altegris

 

“Michael Covel does an excellent job of educating his readers about the little-known opportunities available to them through one of the proven best hedge fund strategies. This book is like gold to any smart investor.”

Christian Baha, CEO, Superfund

 

“Please read [Trend Following] whether you think you have an interest in trend following or are not quite sure…Covel has hit a home run with it.”

Gail Osten, Editor-in-Chief, Stocks, Futures & OptionsMagazine

 

“Covel has created a very rare thing—a well documented and thoroughly researched book on trend following that is also well written and easy to read. This is one book that traders at all levels will find of real value.”

John Mauldin, author of Bull’s Eye Investing

 

For more than 30 years, one trading strategy has consistently delivered extraordinary profits in bull and bear markets alike: Trend Following. Just ask the billionaire traders who rely on it...traders like John W. Henry, whose trading profits bought the Boston Red Sox!

 

In Trend Following, New Expanded Edition, you’ll meet them...and discover exactly how to use trend following in your own portfolio. This expanded edition includes more than 50 pages of easy-to-understand performance charts. It is the book multi-billion-dollar hedge funds have

made mandatory reading for their staffs.

 

Michael Covel goes right to the source, presenting powerful insights straight from the world’s top trend followers, and debunking Wall Street myths and misinformation from well-known pros who ought to know better. You’ll learn how to manage risk, employ market discipline, and, when the moment is right, swing for the home run.

  • Real proof, real data, real results
  • Decades of actual performance charts from professional money managers
  • All the information you need...in one number
    Why the market price tells you all you need to know to trade
  • Pinpointing targets of opportunity
    What to trade, when to trade, and how much to trade
  • How it’s done: classic case studies
    Who profited from the global scandals of the last 15 years…and how they did it
  • Meet today’s leading trend followers
    Extraordinary trader profiles, including top traders from the past 30 years

MICHAEL W. COVEL is the founder and President of Trend Following™. A researcher of the most successful trend following investment managers, he has been in the alternative

investments industry consulting on trend following to individual traders, hedge funds, and banks for ten years.

 

From his writing to public speaking, Covel pulls no punches. Passionately educating his clients in order to find that “edge” has made Covel a widely respected expert in the field. He writes for numerous industry publications and is continually quoted and interviewed by Barron’s, Bloomberg, and RobTV, to name but a few. An experienced and successful entrepreneur, he is a frequent guest on national TV and radio shows and regularly gives presentations at international hedge fund conferences from Hong Kong to Tokyo, advising listeners on proper trading, decision-making, risk management, and trend following. Covel is also Managing Editor at TurtleTrader.com, the leading trend following news and commentary resource since 1996.

 

Living and working in Virginia, he is a lifelong baseball fan.

 

Contents

Foreword by Charles Faulkner

Foreword by Larry Hite

Preface

Acknowledgments

1    Trend Following

2    Great Trend Followers

3    Performance Data

4    Big Events in Trend Following

5    Baseball: Thinking Outside the Batter’s Box

6    Human Behavior

7    Decision-Making

8    Science of Trading

9    Holy Grails

10    Trading Systems

11    ConclusionAfterword

    Introduction to Appendices

A    Fidelity Wealth-Lab Pro

B    Performance Guide

C    Short-Term Trading

D    Personality Traits of Successful Traders

E    Trend Following Models

F    Trading System Example from Trading Recipes

G    Modern Portfolio Theory and Managed Futures

H    Critical Questions for Trading Systems

Resources

Endnotes

Bibliography

About the Author

Index 

 

"synopsis" may belong to another edition of this title.

Review:

A recent interview with Michael Covel on Bloomberg Radio (6.5 MB MP3 audio file) about trend following. "Please read [Trend Following] whether you think you have an interest in trend following or are not quite sure. I guarantee you will be happy that you took the time. It, of course, covers how trend following works, how it's done, and who can do it, and it doesn't beat around the bush with generalities. Again, get this book. Covel has hit a homerun with it."Gail Osten, Editor-in-ChiefStocks, Futures & Options MagazineOfficial Journal for Personal Investing in Stocks, Futures and Options "A mandatory reference for anyone serious about alternative investments."Jon Sundt, President and CEO of Altegris "Michael Covel does an excellent job of educating his readers about the little-known opportunities available to them through one of the proven best hedge fund strategies. This book is like gold to any smart investor."Christian Baha, CEO, Superfund "A most interesting book -- definitely a 'must have' on your shelf. Pull out the plastic and get it!...Trend Following is well constructed, well written and an excellent distillation of the research undertaken by the author. Backed up by trading 'legends' like Ed Seykota, it convincingly argues that the most successful trading systems are based on trend following...While you may read the book in bed, especially the first time, it is best read at a desk with a notepad handy. While seeming to come from the perspective of technical analysis it is still a very good book on trading psychology...The book is both a great read and an insightful textbook for all traders and investors."Garnett ZnidaricYour Trading EdgeMagazine/strong>Australia "Michael Covel's Trend Following: Essential."Ed SeykotaTrend Follower for 35 years, Incline Village, NVThe Trading TribeEd was originally profiled in The Market Wizards by Jack Schwager "Michael Covel's book is the definitive guide to trend trading. Backed by real world results from some of the biggest and best money managers in the United States, his book will put you on the path to successful trend trading."Larry ConnorsCEO, TradingMarkets.com "Covel has created a very rare thing - a well-documented and thoroughly researched book on trend following that is also well-written and easy to read. It touches on a wide variety of the principles and practices which make for successful trend following. This is one book that traders at all levels will find of real value."John MauldinMillennium Wave Investments, Arlington, TXAuthor of Bull's Eye Investing and editor of Thoughts from the Frontline "I think the book did a superb job of covering the philosophy and thinking behind trend following (basically why it works). You might call it the Market Wizards of Trend Following."Van K. Tharp, Ph.D.Author of Trade Your Way to Financial FreedomPresident, International Institute of Trading Mastery, Inc.Van was originally profiled in The Market Wizards by Jack Schwager.

From the Author:

This book is the result of an eight-year "hazardous journey" for the truth about Trend Following. It fills a void in a marketplace inundated with books about finance and trading but lacking any resource or, for that matter, practically any reference to what we believe is the best strategy to consistently make money in the markets. That strategy is known as Trend Following. Trend Following seeks to capture the majority of a trend, up or down, for profit. It trades for profits in the major asset classes• stocks, bonds, currencies, and commodities. However simple the basic concepts about Trend Following are, they have been widely misunderstood. Our desire to correct this state of affairs is what, in part, launched our research. We wanted to be as objective as possible, so we based our writing on the available data:

• Trend followers' month-by-month performance histories.
• Trend followers' published words and comments over the last 30 years.
• News accounts of financial disasters.
• News accounts of the losers in those financial disasters.
• Charts of markets traded by trend followers.
• Charts of markets traded by losers in the financial disasters.

It is a pleasure to recognize the colleagues, mentors, finance writers, traders, and friends who contributed directly and indirectly to this book.

William W. Noel, III and Justin Vandergrift must be singled out for special mention. They were the core members of our original Trend Following research team. The book would not have come together without their hard work.

I am particularly grateful to those traders - Ed Seykota, Bill Dunn, Daniel Dunn, Mark Rzepczynski, Pierre Tullier, Jason Russell, Easan Katir, Jonathan Hoenig, and Paul Mulvaney - who were generous with their feedback under tight writing deadlines. And thanks also to Martin Bergin of Dunn Capital Management for an initial introduction to Bill Dunn.

The support of Charles Faulkner must be acknowledged as well. He shared his intellect, enthusiasm, and most of all, his time, reading and critiquing various drafts. His advice kept me out of trouble, and his patience was extraordinary.

Celia Straus, Jerry Mullins, Withers Hurley, Elizabeth Ellen, Justice Litle, Barry Ritholtz, Mark Rostenko, Tom Rollinger, Arthur Maddock and Bob Spear also made valuable contributions.

Throughout years of research, I've benefited repeatedly from the trading wisdom and experience of John W. Henry, Salem Abraham, Peter Borish, Jonathan Craven, Mark Hawley, John Hoade, Shaun Jordan, Carol Kaufman, Jane Martin, Leo Melamed, Larry Mollner, Kim Hunter, Gibbons Burke, Chuck LeBeau, and Leon Rose. I want to especially thank Jerry Parker for answering questions early in my career.

And thank you to the following publications and writers who generously allowed us to quote from their work: Michael Mauboussin, Sol Waksman and Barclay Managed Futures Report, Futures magazine, Managed Account Reports, Michael Rulle of Graham Capital Management, Technical Analysis of Stocks and Commodities magazine, and Winton Capital.

I am also indebted to the following authors whose works continue to be treasure troves of information and insight: Morton Baratz, Peter Bernstein, Clayton Christensen, Jim Collins, Jay Forrester, Tom Friedman, Gerd Gigerenzer, Peter Todd, Daniel Goleman, Stephen Jay Gould, Alan Greenberg, Larry Harris, Robert Koppel, Edwin Lefevere, Michael Lewis, Jesse Livermore, Roger Lowenstein, Ludwig von Mises, Lois Peltz, Ayn Rand, Jim Rogers, Jack Schwager, Denise Shekerjian, Robert Shiller, Brett Steenbarger, Van Tharp, Edward Thorp, Brenda Ueland, and Dickson Watts.

This book could only have come to fruition with the editorial guidance of Jim Boyd at Financial Times Prentice Hall, as well as the able assistance and attention to detail of Dennis Higbee, who copyedited. I also want to thank Donna Cullen-Dolce, Lisa Iarkowski and John Pierce for their remarkable production and marketing skills. And to Paul Donnelly at Oxford University Press, I owe a special debt of gratitude for seeing the potential of our initial proposal.

Michael Covel
Trend Following

"About this title" may belong to another edition of this title.

Top Search Results from the AbeBooks Marketplace

1.

Covel, Michael W.
Published by Financial Times Prent.Int (2007)
ISBN 10: 0136137180 ISBN 13: 9780136137184
New Taschenbuch Quantity Available: 3
Seller
unifachbuch
(Köln, NRW, Germany)
Rating
[?]

Book Description Financial Times Prent.Int, 2007. Taschenbuch. Book Condition: Neu. Gebraucht - Sehr gut Unbenutzt. Schnelle Lieferung, Kartonverpackung. Abzugsfähige Rechnung. Bei Mehrfachbestellung werden die Versandkosten anteilig erstattet. - Sehr guter Zustand, UNBENUTZT, schnelle Lieferung inkl. Rechnung mit ausgew. MwSt. 448 pp. Deutsch. Bookseller Inventory # INF1000036560

More Information About This Seller | Ask Bookseller a Question

Buy New
£ 6.32
Convert Currency

Add to Basket

Shipping: £ 8.78
From Germany to United Kingdom
Destination, Rates & Speeds

2.

Covel, Michael W.
Published by FT Press (2007)
ISBN 10: 0136137180 ISBN 13: 9780136137184
New Paperback Quantity Available: 1
Seller
Ergodebooks
(RICHMOND, TX, U.S.A.)
Rating
[?]

Book Description FT Press, 2007. Paperback. Book Condition: New. Expanded. Bookseller Inventory # DADAX0136137180

More Information About This Seller | Ask Bookseller a Question

Buy New
£ 17.85
Convert Currency

Add to Basket

Shipping: £ 11.63
From U.S.A. to United Kingdom
Destination, Rates & Speeds

3.

Covel, Michael W.
Published by FT Press (2007)
ISBN 10: 0136137180 ISBN 13: 9780136137184
New Paperback Quantity Available: 1
Seller
Irish Booksellers
(Rumford, ME, U.S.A.)
Rating
[?]

Book Description FT Press, 2007. Paperback. Book Condition: New. book. Bookseller Inventory # 0136137180

More Information About This Seller | Ask Bookseller a Question

Buy New
£ 25.49
Convert Currency

Add to Basket

Shipping: £ 5.48
From U.S.A. to United Kingdom
Destination, Rates & Speeds

4.

Covel, Michael W.
Published by FT Press (2007)
ISBN 10: 0136137180 ISBN 13: 9780136137184
New Paperback Quantity Available: 3
Seller
Murray Media
(North Miami Beach, FL, U.S.A.)
Rating
[?]

Book Description FT Press, 2007. Paperback. Book Condition: New. Bookseller Inventory # P110136137180

More Information About This Seller | Ask Bookseller a Question

Buy New
£ 40.26
Convert Currency

Add to Basket

Shipping: £ 16.60
From U.S.A. to United Kingdom
Destination, Rates & Speeds

5.

Covel, Michael W.
Published by FT Press (2007)
ISBN 10: 0136137180 ISBN 13: 9780136137184
New Softcover Quantity Available: 1
Seller
Book Deals
(Lewiston, NY, U.S.A.)
Rating
[?]

Book Description FT Press, 2007. Book Condition: New. Brand New, Unread Copy in Perfect Condition. A+ Customer Service!. Bookseller Inventory # ABE_book_new_0136137180

More Information About This Seller | Ask Bookseller a Question

Buy New
£ 29.68
Convert Currency

Add to Basket

Shipping: £ 62.30
From U.S.A. to United Kingdom
Destination, Rates & Speeds

6.

Covel, Michael W.
ISBN 10: 0136137180 ISBN 13: 9780136137184
New Quantity Available: 1
Seller
Castle Rock
(Pittsford, NY, U.S.A.)
Rating
[?]

Book Description Book Condition: Brand New. Book Condition: Brand New. Bookseller Inventory # 97801361371841.0

More Information About This Seller | Ask Bookseller a Question

Buy New
£ 103.26
Convert Currency

Add to Basket

Shipping: £ 20.77
From U.S.A. to United Kingdom
Destination, Rates & Speeds