Ep. 1194: Jerry Parker Interview with Michael Covel on Trend Following Radio

Trend following relies on a simple, systematic approach that prioritizes letting profits run while keeping losses small. Jerry Parker, an original Turtle trader, emphasizes that true trend following requires discipline and a rejection of the complex volatility management often seen in modern managed futures. By maintaining a robust, rules-based strategy across diverse markets—including commodities, currencies, and single stocks—traders can capture rare, high-performing outliers that drive long-term success. Parker argues that the obsession with smoothing returns through volatility management often compromises the effectiveness of the strategy, shifting risk from open trade equity to capital. His upcoming ETF, TFPN, aims to restore this pure trend following philosophy by integrating a broad range of assets, including single stocks, to achieve consistent, outlier-driven performance without the unnecessary complexity that dilutes the core methodology.