Ep. 78 – Trend Following with Hedge Fund Manager Mike Melissinos
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In this episode:
Tom and Owen have got off to a flying start in the crypto competition
Well, one of us is flying up and one is flying down… Listen to find out which!
We are pleased to see that about 70% of active traders in the competition are making money
Mike Melissinos, trend following hedge fund manager, is on the show to keep us grounded
He demonstrates how you can stick to your trading plan even in tough circumstances
And make hay when the sun shines!
Trader Interview – Mike Melissinos – Trend Following Hedge Fund Manager
Mike Melissinos is only a few years older than us, but he runs a hedge fund. That is pretty cool. He’s a dyed-in-the-wool trend following trader and is a fan and friend of Turtle Trader and trend following legend Jerry Parker.
Mike talks to us about what it is like to be on top of the world when the markets are working for your trading style, and how to keep the faith when the markets just aren’t conducive to making money.
Trend following is a notoriously cyclical way of trading. Sometimes markets are trending, sometimes they just are not. Mike keeps the faith because he has done his research. He has done his maths and he knows that trends cluster, and when times are good they are very good.
He also knows that trend following mega markets usually directly follow extended flat periods. It is no secret that we are currently in a flat period and that trend followers are suffering, particularly in commodities.
But, Mike knows that the good times could be just around the corner, so he keeps the faith.
Crypto Trading Competition Update
It has been really pleasing to see so many people to get off to a positive start in the crypto competition. Despite there being no leverage available, one trader is up over 20% in the first 6 days. Many others are in double digits and about 70% of active traders overall are making money.
There is plenty of distance to go, but this is a good start!
The trade of the week was definitely a Bitcoin Long trade from the bottom of the weekend sell off. A number of traders were caught out by the initial sell off over the weekend when Segwit2x was cancelled. Fortunately I think a few traders didn’t start till Monday so they weren’t caught in a long position!! Or maybe some smarty-pants actually went short and caught the move down? If so email in and tell us!
We’ve seen some movement in Alt-Coins with a spike up in Ripple and Litecoin, though both of those moves were temporary and anyone not taking profit will have been left with almost zero gains after a fast retracement.
But maybe this signals a medium term upwards movement back towards the all time highs? Ripple’s spike was caused by good news from American Express, so it may have a longer term effect.
19 days to go! Who will win the £1000 and more importantly, the kudos of winning the world’s first crypto trading competition!