62: Michael Melissinos on Why Trend Following Works When You Don’t Follow the Herd

by Cam | Feb 8, 2017 | 14 comments

Ex athlete Michael Melissinos went from promising baseball career to accountant to hedge fund manager.

How? Well, whilst working at Bear Stearns he spent his evenings studying trend following and systematic trading. His simple excel back testing beginnings made him realize trading was a game of discipline which suited his personality down to a tee.

A natural “protector” Michael moved into managing money of others where he now trades on behalf of his investors.

In the show Michael reveals:

The philosophy behind his success
Two ways to determine a trend
His definition of Adaptive Trend Following
The one thing in trading you shouldn’t flip flop on

14 Comments

rippy41 on February 13, 2017 at 7:38 pm

I kept hitting rewind but could not hear or find the software package that he rec’s . . . anyone know and please send link
- Michael Melissinos on February 13, 2017 at 8:24 pm
  
  I believe I recommended signing up for the free trial at Trading Blox as a simple way to get started.
  - rippy41 on February 13, 2017 at 8:35 pm
    
    thank you!
    great episode.
    - Michael Melissinos on February 13, 2017 at 8:39 pm
      
      Thanks, man. I appreciate it.
      - rippy41 on February 13, 2017 at 8:58 pm
        
        I will follow up with an email. I was working at a hedge fund and left to go to grad school to develop my own approach and have since gotten away from that due to financial and family considerations. Starting to inch back and your podcast kicked me in the nuggets to get going again!
      - Cam Hawkins on February 13, 2017 at 9:34 pm
        
        Great to hear!
Tev Ozcelik on March 28, 2017 at 12:53 am

Hi Michael, I also do trend following with a close above 200 SMA on daily. When you say 200 day high, does it mean close over 200 sma?