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Bestselling author Michael Covel is the host of Trend Following Radio with 15+ million listens. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trading -- all passionately explored and debated. Guests include Nobel Prize winners: Robert Aumann, Angus Deaton, Daniel Kahneman, Oliver Hart, Harry Markowitz & Vernon Smith. More guests: Jack Canfield, Howard Marks, James Altucher, Dan Ariely, Jean-Philippe Bouchaud, Kathleen Eisenhardt, Marc Faber, Tim Ferriss, Jason Fried, Gerd Gigerenzer, Larry Hite, Sally Hogshead, Ryan Holiday, Jack Horner, Ewan Kirk, Steven Kotler, Michael Mauboussin, Tucker Max, Barry Ritholtz, Jim Rogers, Jack Schwager, Ed Seykota, Philip Tetlock & Walter Williams. 1200+ episodes.

Feb 3, 2014

My guest today is Ed Seykota, a commodities trader, who earned S.B. degrees in Electrical Engineering from MIT and Management from the MIT Sloan School of Management, both in 1969. In 1970 he pioneered Systems trading by using early punched card computers to test ideas on trading the markets.

The topic is his book Govopoly in the 39th Day.

In this episode of Trend Following Radio we discuss:

  • Trend Following
  • Seykota’s concerns about our economy
  • The assimilation model and how Seykota sees assimilation happening today
  • The definition of “govopoly”
  • How Seykota’s mentor’s work plays into Seykota’s work today
  • Thinking about systems
  • What we can do to “fix” the economy, or to at least prepare yourself
  • The exponential curve that assimilation takes
  • Noticing things before they’re important
  • Why Seykota doesn’t provide a “solution” to the problem and instead advocates for the system to correct itself
  • What we can do as people in response to the system
  • Detroit as a microcosm of the US
  • Ways to make money during the assimilation

Jump in!


I’m MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I’m proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

To start? I’d like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here:

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