SI109: Investing like a legend ft. Perry Kaufman

Published: Oct. 12, 2020, 2:23 a.m.

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Systematic trading and Trend Following legend, Perry Kaufman, joins us on the show today to discuss the importance of being comfortable with risk, the benefits of continuously ranking & evaluating markets, the importance of \\u2018fat tails\\u2019 in Trend Following systems, why you might want to use equal risk with every trade, how to avoid being over-correlated, trading single stocks vs indices, opinions on profit targets, and why he generally prefers long trades vs short trades.

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Episode TimeStamps:

00:00 \\u2013 Intro

01:25 \\u2013 Weekly review of performance

06:08 \\u2013 Niels: How does the content in your book, Trading Systems, inform your decisions when building a system, and what do they mean to you?

26:44 \\u2013 Niels: How do you avoid overfitting your system to accommodate markets that may not perform well in the future?

29:28 \\u2013 Niels: How do you avoid being over-correlated?

30:17 \\u2013 Niels: How does your ranking system work when adding or removing markets from your trading universe?

44:19 \\u2013 Niels: How do you feel about profit targets?

53:06 \\u2013 Niels: Why do you believe Trend Following strategies will always be successful?

57:00 \\u2013 Niels: Have you found in your research that long-sided trades tend work better than short trades, and if so, have any hypothesis as to why that is?

01:04:33 \\u2013 Moritz: What are your thoughts on trading single stocks vs trading the indices?

01:09:54 \\u2013 Niels question for Moritz: How have you incorporated yourself & Perry\\u2019s work on Volatility Targeting into your trading?

01:21:29 \\u2013 Niels: Are there any new discoveries that'