How to Build a Trend Following System | Interview with Tom Basso | Hedge Fund Manager

Welcome Back to the Market Chat Podcast. For this episode we have a very special guest Tom Basso. Tom is an extremely experienced trader with decades worth of trades under his belt. He was featured in New Market Wizards by Jack Schwager and Trend Following Mindset by Michael Covel.

He was the founder and President of Trendstat Capital Management where he developed effective trend following systems which produced extremely consistent returns over many market cycles.

In this interview we cover many different topics including mindset, how to build a trend following system, position sizing, and his methods for trading multiple markets.

Enjoy!

-Richard

►Connect with Tom

  / basso_tom  
  / enjoytheride.world  
https://enjoytherideworld.odoo.com/

►Book Recommendations

Trend Following Mindset- Covel https://amzn.to/3FqQejr
Successful Traders Size Their Positions - Why and How? https://amzn.to/3DkyAMh
Panic-Proof Investing: Lessons in Profitable Investing from a Market Wizard https://amzn.to/3oGIrrD

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Timestamps:

0:00 Introduction
0:30 Tom's background, Learning to Trade, Running the Trendstat Fund
0:34 How to you develop a trend-following system
4:14 Early mistakes Tom made during his career
10:16 Position Sizing Tips.
12:00 Advice for traders who struggle mentally with with taking losses
19:00 What is it like trading so many different markets
23:04 How does Tom handle Market Corrections
29:07 Why Tom focuses on Price action above all else
42:50 How to make sure a strategy is not biased to a particular time period
49:35 Performance Metrics Tom's uses when back-testing a Strategy
1:03:15 Tom's Daily Trading Routine
1:05:10 Tom's Recommended Books for New Traders
1:07:15 Advice for New Traders
1:10:45 How To reach out to Tom

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Music from Absent Mind:   / absentinlife  
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Disclaimer
The content of this video is for educational purposes only and should not be taken as a suggestion to buy or sell anything