SI154: Defining 'Outliers' from a Trend Follower's Perspective ft. Richard Brennan

Richard Brennan joins us today to discuss the current global risk factors that could cause a large liquidity event, what the term ‘outlier’ really means from a Trend Follower’s perspective, the role of currencies in a Trend Following portfolio, the point at which diversification can end up diluting returns, whether different asset classes should be traded on different timeframes, some thoughts on pyramiding, and defining ‘non-linearity’ when discussing Trend Following models.-----EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder ToolIn this episode, we discuss:The increasing global risks that could cause large market selloffsHow a Trend Following trader thinks about 'outliers'The role of currency pairs in a Trend Following systemDiversification versus 'Di-worse-ification'Whether to use different timeframes for different asset classesThoughts on 'pyramiding' in and out of positionsRich's explanation of the term 'non-linearity squared'-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.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.Send your questions to [email protected] please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Rich on Twitter.Episode TimeStamps:00:00 – Intro02:09 – A huge thank you to listeners of the show for leaving your 5-star reviews on iTunes02:31 – Macro recap from Niels11:17 – Weekly review of performance17:10  – Q1; Adam: At what point does diversification become dilution?22:32  – Q2; Mathew: Have there ever been any years where currencies were your top performers?32:09 – What the term ‘outlier’ really means from a Trend Follower’s