Trend Following, 5th Edition: How to Make a Fortune in Bull, Bear and Black Swan Markets

Although I purchased this newest edition when it first came out, it took me a while to finish it. Not only because of the length but because there are so many ideas, information and illumination that I often went off on tangents of additional research and exploration. Some previous reviewers stole my lines but I'll go ahead and say them anyway... If previous editions were a wonderful introduction and overview of trend following, this 5th edition is the trend following bible. Unlike other bibles, this one has tons of proof to support the trend following philosophy. From interviews with top-performing traders who have used trend following to make fortunes to in-depth studies of trend following techniques, some of which go back as far as 800 years. For those of us who didn't do so well in Statistical Analysis 101, your eyes may glaze over in some parts of these studies but for the real quants out there, you'll love digging into the meat of it. Some of these studies and other ideas presented in this book even lead me to make some tweaks in my own trend following techniques. I highly recommend this book both to the novice trader looking for a solid foundation and to the seasoned professional who would like to improve their trading. Not every detail of a trading system is laid out for you. You're not going to get push-button riches. You might have to actually get off your butts and do some work but you'll have your start in the right direction if you pay attention.

I usually don't write book reviews as I don't like to feed the mass hysteria, but I had to pay my respects to Mike without whom I would have been still stuck working for the man and would have lost whatever was left after the 2008 fiasco. I stumbled upon Turtle traders sometime in 2009 after losing more than half of my wealth in 2008. Before coming to a conclusion on how awful investor I would have been, I would like to tell that I had years of experience working in Investment banks and had pretty good idea of the markets and drank the same cool aid which my fellow traders drank. But unlike the big banks I didn't have the government save me when sh*t hit the fan. Now 9 years later, thanks to Mike and his books, I trade in 30 different markets while staying on a small island (literally) where nothing interesting happens. Due to him I was able to cut out the noise. I am not on Facebook, Twitter, Instagram, Reddit or any other mass hysteria channels. I don't watch CNBC or Bloomberg, unless there is nothing interesting on Netflix to watch and I need some entertainment. I made more money in times when everyone was bleeding and just to test my models even traded cryptos and made a bloody fortune there as well. What people don't get is that this book is not a handbook of trading. It is more like a map which will help you develop the thought process to become a system trader. Our problem today is we want handouts, ready formulae for milking the cash cow. But that's not how the world works. No one will give you their money making formula in a book. You have to go out and figure it out yourself. What this book can help you is to figure out the right path. The interviews in the new edition is pure gold. If you know what those legendary traders are saying, you will know they are giving out the secret in plain words, its up to the reader to comprehend. Finally I would like to say this book is like The Bible. Some people think its a storybook, some get inspired and some find God. P.S: I know many of the reviews book is not actionable and its true coz its not supposed to be actionable. Now if you decided to take the red pill and go down the rabbit hole, its going to take a lot of hard work. First thing (and the most difficult one) will be to throw out all your beliefs and start from scratch. Brush up or learn more about Statistics and Probability (tons of books and free courses out there) which is absolutely necessary. Learn more about Game Theory which I feel is very important. Then if you are still alive and want to get some more, I suggest these books for further reading 1. Thinking, Fast and Slow This is the base of Trend Following, understanding human behaviour. 2. Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts How to make decisions when you have limited variables you can control and no whatsoever no control on the outcome. 3. Trend Following with Managed Futures: The Search for Crisis Alpha (Wiley Trading) A book by Chief Scientist of ISAM and legendary Trend Follower which will be your induction to the world of Managed Futures 4. Following the Trend: Diversified Managed Futures Trading (Wiley Trading) A wonderful read on actual Trend Following 5. Evidence-Based Technical Analysis: Applying the Scientific Method and Statistical Inference to Trading Signals (Wiley Trading) This one gets bit technical but this is the real deal. This book will dissect TA and help you decide how to evaluate strategies. This is a no BS book but you should be open to receive the knowledge 6. Trading Systems: A New Approach to System Development and Portfolio Optimisation This one is bit old but this one helped me a lot when I was building up my first system and the methods still hold good and will continue to hold good for any person starting out on the journey.

Covel transcends the norm with this thought provoking look into the mind of truly remarkable free-thinker. Trading books have a tendency to repeat the basics while providing bland filler devoid of substance. Covel breaks this trend by infusing every page with insightful famous quotes that carry lessons through all aspects of approaching life. Instead of subjective "faith based" rule giving, Covel dives deep into objective analytical research into not only how top institutional traders think, but the specific strategies and methods they use. This Trend Following market theory is coupled with details on provable and testable trading methods that have worked for decades. Traders of all types can benefit from the Trend Following principles and mentality propagated by this book + the lessons learned can be adapted to enhance any trading style. By the end of the book, you will surely be held, above the rest, in a cloud of direct rationality that allows you to look down at the sea of chaotic trading advice with clarity and precision. A+++

The book is very interesting and complete as it talks about what trend following is and how the CTA industry works - as opposed to other types of investments. It's inspiring but it doesn't teach you how to be a trend follower yourself. Althought it mentions a very simple trend following strategy, it doesn't give you details on how much capital would you need to start and it doesn't go deep on Money Management either. It became clear to me that trend following works, but I didn't really learn the details on how to use it by trading it myself.

The book is an amazing refresher with a lot of new information since the earlier book. Trend following is a strategy goes against human psychology and hence it is not easy to make people understand specially in my country India. I have been applying this for last 10 years on India asset classes equities, commodities and currencies as international futures trading is not allowed to Indian citizens. The book is a must read for all investors, traders, fund managers alike and provide important lesson why buy and hold can devastate portfolios in a Japan style bear market. As previous book, it doesnt contain any ideas on how to make money but that is something the least of botheration to a trend follower. Thanks Michael to make people understand TREND FOLLOWING and request you to visit India some time so that there can be more understanding to this in India.

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Great book with great insights.

3 days after receiving this book, throw it straight into trash. Over promising and brain washing style statements without providing practical knowledge whatsoever. Book title itself is a click bait. Don't buy if you are someone trying to learn how to trade!

Hi, The book is really worth reading if you are interested in market strategies around trends and momentum. However, I got my book in a soaked paperbox from Amazon. It’s just a shame Amazon can’t do a better job ruining my experience with this great book. The book I got is just a wreck !!! Poor work by Amazon !!!