SI31: Should you be using a Stop-Loss? or Target a certain level of Volatility?

Published: April 15, 2019, 1:08 a.m.

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Does Systematic Trading completely eliminate all emotions from the process?  Is it wise to use Stop-Losses?  Should CTAs target low-volatility & average returns, or high returns with higher possible volatility?  Can a finely-crafted Trading System be considered in the same way as a fine piece of art?  Are all Trend Following systems essentially the same?  We also discuss if intricate rules are better than \\u2018broader brush-strokes\\u2019, if it really is \\u2018difficult times\\u2019 for Trend Following or simply Recency Bias, as well as touching on the value of managing and owning your emotions throughout a trade.  Also, we discuss how to deal with an upcoming Futures contract rollover, and answer the question: just how important is the \\u2018Execution Desk\\u2019 at a Trading Firm?

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Episode TimeStamps:

00:00 \\u2013 Intro

01:50 \\u2013 Weekly review of performance

05:30 \\u2013 Top tweets

01:12:00 \\u2013 Questions 1&2: John; If a trade signal comes just before a roll date, do you move the roll forward to avoid trading twice? Do you ever try to \\u201cgame\\u201d a roll to make a profit?

01:17:30 \\u2013 Question 3: Michael; When the system designer and the executive are not the same person, how does the executive have confidence in the system/work of the system designer?

01:23:30 \\u2013 Benchmark performance update

Copyright \\xa9 2023 \\u2013 CMC AG \\u2013 All Rights Reserved

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