SI38: Process over outcome and how sports relates to trading

Published: June 2, 2019, 11:55 a.m.

This week, we discuss the importance of process over outcome, how sports can be related to Trading, and whether mistakes are to be avoided completely or something we should look forward to learning from.  Questions answered this week include: is Ray Dalio\u2019s suggestion of 15 uncorrelated return streams the ultimate way to diversify your portfolio?  Are some markets more tradable for Trend Followers than others? Is market \u2018noise\u2019 making it harder for Trend Followers, or is the volatility a good thing? How do you deal with strategic retirement decisions as a Trend Follower? Is it in a Hedge Fund\u2019s best interests to stay relatively small and private?

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Episode TimeStamps:

00:00 \u2013 Intro

02:30 \u2013 Weekly review of performance

10:15 \u2013 Live event update 10/26/19-10/27/19

11:30 \u2013 Top tweets

40:30 \u2013 Question 1: Jack; When/how do you decide to change a losing TF system?

49:20 \u2013 Question 2: Werner; How do you decide not to add a specific market to a TF system?

57:15 \u2013 Question 3: Sam; Should investors decrease risk as they near retirement?, and if so\u2026How?

01:24:30 \u2013 Discussion of noise vs volatility paper by Michele Cocchiglia & Stefan Martinek of Kelonia Capital Management: Deconstructing Noise \u2013 A closer look at the notion of noise, its definition and potential impact in today\u2019s market environment.

01:29:00 \u2013 Benchmark performance update

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