“How to improve trend following performance” - David Lundgren

Trend following trader David Lundgren joins us to discuss how to improve trend following performance, including:
● The problem with momentum (and why momentum “doesn’t work”),
● Why momentum isn't working today,
● Mixing momentum with trend following for better performance,
● The 4 conditions that must happen for a trend to occur,
● Modelling regime drivers and digging deeper to understand true market health,
● What to do when trading strategies are struggling,
● And much more!
► You can discover more from Dave at / dlundgren3333
❓Want weekly trading insights, expert interviews, Sunday Summaries and more❓
Join the free Better System Trader newsletter📰: bettersystemtrader.com/newsle...
⭐⭐⭐ Support The Channel ⭐⭐⭐
☕ Buy Me a Coffee: buymeacoffee.com/bettersystem...
** Timestamps **
00:00 Getting started
02:02 Trading background
05:02 When momentum does and doesn't work
08:52 Why momentum isn't working today
11:43 What's wrong with momentum
15:47 Mixing momentum with trend following
19:19 Trend following when momentum isn't working
22:24 Regime detection when trend following
25:47 The 4 conditions that must happen for a trend to occur
29:52 Why all traders need to understand their "edge"
35:57 Modelling regime drivers and digging deeper to understand market health
43:25 Fundamental influences on trend following
45:16 Entering and exiting trend trades
49:50 Systematic rules after discretionary process
55:20 What to do when trading results are struggling
57:10 How to discover more from Dave
🎓🎓🎓 MORE TRADING EDUCATION & CONTENT 🎓🎓🎓
► Better System Trader website: bettersystemtrader.com
► Interviews With Pro Traders: interviewswithprotraders.com
► Smashing False Breakouts: smashingfalsebreakouts.com
► Trading Market Internals: tradingmarketinternals.com
► DPS Trading Technique: dpstradingtechnique.com
Disclaimer:
Trading in the financial markets involves a substantial risk of loss and is not suitable for everyone. All content produced by Better System Trader is for informational or educational purposes only and does not constitute trading or investment advice. Past performance is not necessarily indicative of future results.

[@BetterSystemTraderPodcast]

What was your #1 takeaway from my chat with Dave? Let me know in the comments below.

[@joey86bu1]

This was the best interview you have done in a while. Already has me back testing some ideas.

[@BetterSystemTraderPodcast]

cheers joey, hope those ideas work out well for you :-)

[@goodmoveandy4278]

Terrific interview. Really liked the tables and will start doing them for my own trading.

[@scottphillips8117]

This was a fanatistic interview. One of the best in a while

[@BetterSystemTraderPodcast]

hey scott, thanks for the comment!

[@adokoka]

Another great talk! Thanks Andrew and David!

[@BetterSystemTraderPodcast]

thanks User!

[@ernestochristianmoralesp.3114]

Thank you for the interview.

[@BetterSystemTraderPodcast]

pleasure E!

[@davidmuldowney1]

Great chat. Liked the idea of setting expectations for the process based on the prevailing regime. Good thought

[@BetterSystemTraderPodcast]

cheers david!

[@lifezg00d]

Very insightful! Thank a lot. Key takeaway for me is the market breadth table. Love it.

[@BetterSystemTraderPodcast]

thanks for joining us Pravin

[@stanleyyang4039]

Great interview and podcast!

[@BetterSystemTraderPodcast]

cheers Stanley!

[@raucus9713]

Andrew, one of your recent best. I'm looking forward to the ppt, if Dave had agreed to release it.

[@BetterSystemTraderPodcast]

thanks rick, you can download a copy of the slides on the show notes page at bettersystemtrader.com/194

[@LouisSpectorCMT]

Wow! Great interview! Any way to send me the slides so I can study them? Thank you.

[@BetterSystemTraderPodcast]

hi louis, you can download a copy of the slides on the show notes page at bettersystemtrader.com/194

[@jima639]

Sorry, but still can't seem to find the slides/book mentions in the show notes from this show anywhere. Are they still posted?

[@BetterSystemTraderPodcast]

Hi @Jim - please check the show notes page now (bettersystemtrader.com/194), the link is just above the video

[@ultrafeel-tv]

Advanced Archer: How to Stay Calm at the Center - I don't seem to be able to find this book in English anywhere, also not a review on youtube. Any tips?

[@BetterSystemTraderPodcast]

hi fox, I was able to find it on amazon (US and AU)

[@davidmuldowney1]

Can anyone confirm what is meant by a "decile" as referred to at about the 10 minute mark please? Thought I understood but have confused myself since

[@davidlundgren9785]

Hi David...decile simply refers to a corresponding "bucket" of performance. If you take all the stocks in a benchmark, sort them by their prior one year performance, and break them into performance groups, the top 10% would be referred to as "top decile". The bottom 10% would be bottom decile. If you broke them down instead into top and bottom 25%, you'd be looking at quartiles instead of deciles.

[@davidmuldowney1]

@@davidlundgren9785I understand. thank you for the clarification. Appreciate that.

[@mytube99]

Why doesn’t he look at Momentum as a Factor Style? Momentum didn’t do well in Q2 but Value and Small Caps did.

[@ysmetannikov]

There was a promise of putting his favourite trading books in the show notes.

[@BetterSystemTraderPodcast]

hey eugene, you can download a copy of the slides on the show notes page at bettersystemtrader.com/194

[@ysmetannikov]

@@BetterSystemTraderPodcast thanks,!

[@AC-kl2ut]

​@@BetterSystemTraderPodcast Hi - Many thanks for a great interview! Where exactly on the episode page are the show notes? I am struggling to find the link.

[@BetterSystemTraderPodcast]

@@AC-kl2ut it's on the show notes page (bettersystemtrader.com/194), just above the video

[@sonofman70x7]

"Don't confuse brains with a bull market."

[@absoluttchamp]

Listening to this guy makes me feel like I have ADHD