Ep. 215: Al Abaroa Interview with Michael Covel on Trend Following Radio

My guest today is Al Abaroa, the Chief Investment Strategist at Kingsview and has been a registered broker and trader since 1993. He has seen all aspects of the investing industry.

The topic is a white paper that Abaroa wrote about trend following.

In this episode of Trend Following Radio we discuss:

  • How people forget that anything can and will happen
  • Why we’re seeing optimistic behavior in the market
  • The similarities between the WhatsApp/Facebook acquisition and the AOL/Time Warner acquisition
  • Abaroa’s wealth formula
  • “Reasonable returns”
  • Long term vs. short term outlooks
  • The advantages of youth in trading
  • Lifespan growth, and retirement
  • Tom Basso and black swan events
  • Looking back on major crashes
  • Development and distribution as the two modalities of price
  • Focusing on price action
  • The Global Volatility Index
  • Looking at black swan periods as a place to profit
  • The asymmetrical return stream and the asymmetrical nature of trend following
  • Why trend following produces returns a minority of the time
  • Position sizing
  • Fixed contract allocation vs. fixed fractional contract allocation and their role in position sizing
  • Trend following investors and market timing
  • Seeking immediate gratification in trend following investments
  • Looking at trend following track records

Jump in!

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I’m MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I’m proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

To start? I’d like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/

You can watch a free video here: https://www.trendfollowing.com/video/

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Hope you enjoy my never-ending podcast conversation!