In this week’s episode, we discuss why Sharpe Ratios should be taken with a pinch of salt, the benefits of using a Trading Coach, why consistently aligning with the best odds may be a better strategy than trying to predict future price moves, DUNN Capital’s recent award from HedgeWeek magazine, why ‘the standout hedge fund traders this year have been computer-driven Trend-Followers’, and why Risk Management is more important than strategy or philosophy. Questions answered this week include: Why are commodities seen as more risky than equities? Can you use Options in a Trend Following strategy? Should you keep your stop-loss proportionately the same across different time-frames? Are there any markets to be avoided by new managers?
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Episode TimeStamps:
00:00 – Intro
01:05 – Reading of various podcast reviews
03:00 – Macro recap from Niels
06:20 – Weekly review of performance
10:15 – Discussion of Mercer Trend Following paper
18:15 – Live event update 10/26/19-10/27/19; Special Guest: Denise Shull
20:35 – Top tweets
36:10 – Questions 1/2/3: Eric; Do you hedge with OTM options? Can you use options to trade trends? Will HFT algos negatively impact TF systems?
41:40 – Question 4: Sam; Should stop distance (ATR multiple) adjust with the trend speed?
47:50 – Question 5: Noobe; Are there any contracts a new manager should avoid?
54:20 – Question 6: Clay; With minimal trading activity, what do TF do all day?
01:00:50 – Question 7: Giangitano; Should...