Key Takeaways
- • Michael Covel's Trend Following newsletter published a reader letter from an independent trader in Italy who has studied trading for about nine years and struggled to find a consistently profitable systematic strategy after costs.
- • The reader asked three questions: whether a retail trader with small capital can develop a sustainable trend-following edge, what the most important source of that edge is, and what principles to study first.
- • Covel's published reply is promotional, stating that "trend following is for everyone" and directing readers to his books, Flagship Course, and Systems, which he says are used by clients in 70+ countries.
- • The source contains no performance data, fund figures, or institutional developments; its relevance is limited to retail trading education.
Summary
The Trend Following publication features a letter addressed to Michael Covel from an independent trader in Italy. The correspondent reports approximately nine years of study in trading, including quantitative finance, systematic strategies, and backtesting in Python. He says he has tested price action, moving averages, Heikin Ashi candles, and Donchian breakouts without finding a strategy that stays consistently profitable after transaction costs and across different market conditions. He describes feeling fatigued after the long effort and says he would not want to lose hope.
The writer says his study led him to Covel's work and the philosophy of trend following, and he specifically cites Covel's emphasis on the success of profitable traders worldwide. He poses three questions: whether an independent retail trader using public price data and a relatively small account can still develop a sustainable systematic trend-following edge; what the most important source of that edge is today, whether entry methodology, management of losing and winning trades, portfolio diversification, or a combination; and which principles or publicly available resources he should study first, with a preference for objectively testable methods over discretionary or psychological approaches.
The published response is brief and promotional. It states that trend following is for everyone, describes it as suitable for beginners, students, and professionals in all countries, and distinguishes it from day trading short-term bars, prediction, or fundamental analysis. It directs readers to Covel's books, Flagship Course, and Systems, which it describes as trusted by clients in 70+ countries, and lists site sections including performance, research, and markets to trade. The excerpt does not provide the substantive answers to the questions, nor any verifiable performance track record.
The writer says his study led him to Covel's work and the philosophy of trend following, and he specifically cites Covel's emphasis on the success of profitable traders worldwide. He poses three questions: whether an independent retail trader using public price data and a relatively small account can still develop a sustainable systematic trend-following edge; what the most important source of that edge is today, whether entry methodology, management of losing and winning trades, portfolio diversification, or a combination; and which principles or publicly available resources he should study first, with a preference for objectively testable methods over discretionary or psychological approaches.
The published response is brief and promotional. It states that trend following is for everyone, describes it as suitable for beginners, students, and professionals in all countries, and distinguishes it from day trading short-term bars, prediction, or fundamental analysis. It directs readers to Covel's books, Flagship Course, and Systems, which it describes as trusted by clients in 70+ countries, and lists site sections including performance, research, and markets to trade. The excerpt does not provide the substantive answers to the questions, nor any verifiable performance track record.
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