Trend Following

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 (TM). 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