Episode description
Episode description
Mark Rzepczynski joins us this week to discuss ‘algorithm aversion’ and the science of how ‘model anxiety’ shows investors to be naturally wary of rules-based systems. We also discuss how to evaluate momentum data, how a busy week for market news can still be a quiet week for Trend Followers, the benefits of moving away from ‘peak complexity’ as soon as possible, why having too many filters can expose a trader to large opportunity costs, the optimal percentage amount of risk per trade, as well as portfolio construction versus signal generation and which is more important.
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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
In this episode, we discuss:
- How behavioural finance leaves investors under-allocated to Trend Following strategies
- How to perceive momentum data
- Why the steady flow of market news often has little value for Trend Followers
- Embracing simplicity
- The need to avoid too many filters in your system
- How much should be risked per trade
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Episode TimeStamps:
00:00 – Intro
01:49 – A huge thank you to listeners of the show for leaving your 5-star reviews on iTunes
03:02 – Macro recap from Niels
04:48 – Weekly review of performance
11:59 – Q1; James: What are your views on momentum indicators diverging against price action?
24:56 – Q2; Frank: What is your view on the relationship between the stop and the look-back period?
28:52...