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This week, we discuss the differences between recognising risk and \u2018warehousing\u2019 risk, why Fundamental Investors could benefit from implementing Trend Following rules, Diversification as the most important component of risk management, what Traders can learn from Weightlifters, and the delicate balancing act between simple, simplicity, & complexity.  Questions we answer this week include: Is Systematic Investing a form of betting? How do you define a Trend?  Should you scale into positions?

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Episode TimeStamps:

00:00 \u2013 Intro

01:11 \u2013 Origins of Black Friday

02:43 \u2013 Weekly review of performance

11:45  \u2013 Top tweets

40:52 \u2013 Questions 1/2: Michael; Can the number of trades a system signals, give insight as to how well optimized the system is?  Is there a guideline for the number of trades a system should be signalling, for each chosen timeframe (such as Daily/Weekly)?

45:34 \u2013 Question 3: Richard; Comment- \u2018No deterioration in the overall compound growth-rate of long-term Diversified Systematic Funds, post-2000.\u2019

46:53 \u2013 Questions 4/5: Bing;  Why don\u2019t we risk more per trade? Is trader psychology the main reason for the importance placed on position sizing?

53:21 \u2013 Question 6: Jacob; Can you give examples of strategies that \u2018warehouse\u2019 risk?

56:41 \u2013 Question 7: Nathan; How do we define the parameters of a Trend?

01:01:37 \u2013 Question 8: Chad; Do you scale into a position, or go straight to the chosen max risk of equity per security?

01:05:51 \u2013 Questions 9/10: Chris;  What...