Welcome back to the second part of our interview with Scot Billington of Covenant Capital Management.

In this episode, Scot delves into the practice of trend following and why it is a great model to follow. He also discusses tips for beginning traders and investors, and advice for those who wants to start a firm. Thank you for listening to Part 2 of our conversation with Scot Billington.

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In This Episode, You’ll Learn:

The story of Scot’s childhood obsession with mathematically based, but unknown future outcomes.
The discipline required to follow a mathematical model.
The advantages of trend-following and why the media reports that “Trend Following is Dead” every few years.
Scot’s philosophy on position sizing.
How every sector in the market is highly correlated.
Getting comfortable with taking risks: they exist and it is impossible to avoid them.
The Barbell strategy: have very little money at risk, but the money that is at risk is in the most aggressive things that it can be.
The biggest mistake that allocators make.
How Scot conducts research for Covenant Capital.
Why he is based in Nashville and how he overcomes the challenge of asking investors to buy into the long time-frame.
Finding your niche as a boutique firm.
Advice for managers wanting to start firms today.

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Resources & Links Mentioned in this Episode:

Scot mentions how the media often announces the death of trend following. Here’s an article on the subject from Futures Magazine.
Learn about the Barbell Trading Strategy.
See 10 Fallacies when Selecting CTAs.

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

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And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

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