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This week, Richard Brennan joins us to discuss whether there are any similarities between Trend Following and other investment approaches, the benefits of \u2018forward-testing\u2019 a system, the art of \u2018hunting outliers\u2019, what the optimum level of leverage could be, how much total portfolio \u2018risk-to-stop\u2019 to aim for, some thoughts on margin requirements, and which other strategy complements Trend Following the best. We also took a deep dive into backtesting, touching on topics such as: how much we can safely derive from a backtest, why a backtest with a smooth equity curve should raise alarm bells, a good checklist to use when creating a backtest, and whether some level of curve-fitting may actually be required for a good backtest.

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In this episode, we discuss:

• Which strategies would complement portfolio with 80% already allocated to Trend Following
• Why 'forward-testing' a system can be quite important before going live
• The art of finding and latching onto outlier performers
• Leverage, margin, & total portfolio risk-to-stop
• What information to look for in a backtest
• How to avoid 'curve-fitting' (and could some curve-fitting be beneficial?)

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Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

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Episode TimeStamps:

00:00 \u2013 Intro

03:25 \u2013 A massive thank you to listeners of the show for leaving your 5-star reviews on iTunes

03:47 \u2013 Macro recap from Niels

05:57 \u2013 Weekly review of performance

10:59 \u2013 Trend Followers as hunters of outliers

13:34...