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This week, we discuss the current state of the Bond market, how the larger, commercial institutions affect overall CTA Trend Following performance, how to deal with the fluctuations in currencies when performing backtests, and we also give our thoughts on various Trading exit strategies. Questions answered this week include: does the majority of CTAs get out of their equity positions when the S&P500 falls below its 200-day moving average?  Should you avoid trading markets that perform badly in backtests?  Can a system that is working too perfectly be a bad sign? What are the implications for trading every market in the same way?  What is the benchmark Sharpe Ratio for Trend Following strategies?  Is there a limit to portfolio diversification? Register your interest for our upcoming live event in New York here. You can download your free guide to Systematic Investing, and subscribe to our mailing list by visiting TopTradersUnplugged.com Get a free copy of my latest book "The Many Flavors of Trend Following" here. Send your questions to info@toptradersunplugged.com Follow Niels, Jerry & Moritz on Twitter: @TopTradersLive, @RJparkerjr09 and @MoritzSeibert And please share this episode with a like-minded friend and leave an honest rating & review on iTunes so more people can discover the podcast. Episode Summary 0:00 - Intro 1:45 - Macro recap from Niels 3:25 - Weekly review of returns 12:20 - Top tweets 34:40 - Question 1, Sam: What is the benchmark TF Sharpe ratio? 43:00 - Question 2, Sam: Can there be too much diversification? 53:15 - Question 3, Walter: Please discuss how you deal with foreign currency denominated futures. 58:10 - Question 4, Walter: Since most stocks don’t beat the index or T-bills, shouldn’t shorting be easy (versus the conventional wisdom shorting is hard)? 1:03:00 - Questions 5 & 6, Jeff: What are the risks of using larger (vs smaller) ATR multiples for exits? What kind of exits does DUNN use? 1:08:40 - Performance recap 1:09:40 - Live event update 10/26/19-10/27/19 Subscribe on: