Jerry Parker Interviewed About Trend Following & New ETF with Blueprint

Jerry Parker, legendary Turtle Trader and Portfolio Manager of the Blueprint Chesapeake Multi-Asset Trend ETF (ticker: TFPN) appeared on the Money Life with Chuck Jaffe podcast. The pair discussed the new ETF, which is sub-advised by Jerry’s Chesapeake Capital Corporation and Blueprint Fund Management. They also addressed topics like trend following as an investing methodology and Jerry’s thoughts on conditions in the market at present.

Below are some excerpts from the full interview.

Trend Following as the Investing Process for the New Blueprint Chesapeake ETF

skip to 1:25 in the audio below

Chuck: “So we always start with methodology. And the new fund is not a change for you in terms of, you’re doing stuff that you’ve always done. You’re doing stuff that’s consistent with being a Turtle Trader. But, give us a little background: the Turtle Trading thing, what that means, and then I guess we should really be focused on the new fund. So, tell us a little bit more about what the Blueprint Chesapeake Multi-Asset fund is doing.”

Jerry: “Well for us, it’s all about trend following, longs and shorts, and building a very diversified portfolio. We’ll talk about stocks specifically today, but all of our trading, especially on the new fund, will be fixed income, futures, FX, currency futures, and commodity futures. Longs and shorts. And trying to build the safest portfolio we can, but of course with moderate leverage and risks. But always going with the trend. And given this, still not comprising as far as our ability to deliver reasonable returns for our clients.

Turtle trading is all about following those, having a rules-based strategy, systematic process – with stop losses, taking small losses, letting profits run, not having trading stop to reduce positions or exit positions when the trend turns around a bit. And no prediction.

We’re going to hold on to the winners. It’s the hardest thing in the world, holding onto those winners – even when we’re making lots of money – and not being tempted to cut those profits short. It’s OK to cut those losses short, but we’ve got to be bold and strong, hold onto the winners, wait for the trend to reverse, and stick to our rules. It’s all a rules-based, systematic philosophy.”

Price Trend is King

skip to 3:13 in the audio below

Chuck: “And with the new fund, where you a trend following. Explain what trend following is, because trend following can be a lot of different things. It can be 20-day averages, 50-day averages, 200-day moving day averages. It can be broader trends on other things. What are the trends specifically that matter to you the most?”

Jerry: “Long term price trend. So, it’s price only, looking at the trends with moving averages and breakouts. And relatively long term.”

Trend Following Leaves No Room for Emotional Decision-Making

skip to 10:48 in the audio below

Chuck: “But again, you’re putting those things in where it has that emotion – because it has the childhood thing – but you’re not emotional about it. You’ve got to see the right trend or it doesn’t matter. Right?”

Jerry: “That’s right. It’s going to be. That’s right. I’m waiting, I’m waiting. Everyone else, or most people, talk about what’s the next big stock – and we’re just sitting here with a basket of stocks that eventually we’ll get long or short, depending on the trend. And we have no prediction.”