MANAGED FUTURES and TREND FOLLOWING IN 2017
estimated read time: 1min 50 seconds

I know what you are thinking…

What does Jasmine from Aladdin have to do with trading? We’ll get to that in a bit. But first let’s consider the name “Managed Futures.”

Managed Futures. What a shite name.

Before knowing a ton about it, the term probably makes you think

So are we “managing the future?”
How exactly do we do that?
Are we predicting the future?
Does this require genie lamps?
Will Aladdin make an appearance?
I kind of like Jasmine, she’s hot. “Wait, let me change clothes if Jasmine is coming!”

I kind of like Jasmine, she’s hot. “Wait, let me change clothes if Jasmine is coming!”

Aladdin Jasmine is hot

Managed Futures are “A Whole New World”

Trend Following. A slightly better name.

Ok we follow “the trend” with actionable trade signals based on a mathematical/programmatic system that helps us describe if a stock/future or trading instrument is currently experiencing trend like behavior.

BUT….

What stocks/futures/instruments do we “follow?”
How do we manage a portfolio of risk and allocate the risk throughout?
I can tell if we should be long or short SPX index… but what about cattle and lumber futures?
What if I want to apply trend following strategies to only US equities?

This presentation was given to me recently and I thought it would be good for retail investors to take a look at how professional investors (charge a management fee), specifically trend followers, describe their strategy and trading.

Aspen Portfolio Strategy from Aspen Partners on Vimeo.

There is a big difference between retail traders and professional traders. Nowadays, the gap SHOULD close, given all the access to information on the internet.

Trend Following managers existed but there wasn’t Michael Covel’s book. I’m sure some investors or money managers that allocated to them early on didn’t quite know the intricacies of the strategy as what’s available now.

Check out the presentation and let me know what you think.

This is the first article in a series on TREND FOLLOWING AND MANAGED FUTURES. IF you want updates when the new articles come out, please subscribe by kindly offering your best email.

*This is not advice, recommendation or anything to do with advice. Managed futures, trading and speculation carry a lot of risks.
You can lose everything.
You can be living in a van down by the river.
Please don’t live in a van down by the river.
Unless you want to.
Hey, I hear houses and condos are overrated anyways.
I am all about minimalist lifestyle too.
OK, if you do live in a van down by the river, please let me stay with you one night.
We can talk about managed futures, trading and trend following. ;]