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SI55: Aligning your investments with the best odds and why the Sharpe needs salt
Manage episode 243970667 series 2503344
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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EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool
Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.
IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.
And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.
Learn more about the Trend Barometer here.
Send your questions to info@toptradersunplugged.com
And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.
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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 you have real stop orders in the market (vs stop alerts)?
01:09:20 – Benchmark performance update
01:10:15 – Closing thoughts
Copyright © 2024 – CMC AG – All Rights Reserved
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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:
1. eBooks that cover key topics that you need to know about
In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here
2. Daily Trend Barometer and Market Score
One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here
3. Other Resources that can help you
And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here
765 episodes
Manage episode 243970667 series 2503344
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?
-----
EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool
Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.
IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.
And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.
Learn more about the Trend Barometer here.
Send your questions to info@toptradersunplugged.com
And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.
-----
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 you have real stop orders in the market (vs stop alerts)?
01:09:20 – Benchmark performance update
01:10:15 – Closing thoughts
Copyright © 2024 – CMC AG – All Rights Reserved
----
PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:
1. eBooks that cover key topics that you need to know about
In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here
2. Daily Trend Barometer and Market Score
One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here
3. Other Resources that can help you
And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here
765 episodes
All episodes
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