SI73: How too much experience can work against your investments

Published: Feb. 3, 2020, 2:56 a.m.

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On today\\u2019s show, we discuss when having lots of experience can sometimes work against you, why hard and fast rules can be better than making discretionary decisions, the importance of trading in appropriate position sizes, the amount of drawdown that will likely cause you to deviate from your system, the unpopularity of Trend Following strategies, creating an adaptive portfolio that can respond to market conditions, and why Trend Following should play a considerable part in your portfolio.  Questions we answer this week include: Should you use Trend Filters to confirm your entry signals?  Is the 60/40 portfolio usually less volatile than a typical \\u2018perfect\\u2019 Trend Following portfolio?  Do you recommend adding mean-reversion strategies to your Trend Following systems?  How do you define short, medium and long-term?

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Episode TimeStamps:

00:00 \\u2013 Intro

01:11 \\u2013 Macro recap from Niels

02:41 \\u2013 Weekly review of performance

14:14 \\u2013 Top Tweets

55:44 \\u2013 Mike; Questions 1: Is Trend Following a Dynamic Call Replication strategy?

01:00:39 \\u2013 Seth; Question 2: Do you use Trend Filters to confirm the entry signal?

01:04:10 \\u2013 Michael; Question 3: Is the daily volatility of a 60/40 portfolio less than that of the \\u2018perfect\\u2019 Trend Following portfolio?

01:08:12 \\u2013 Brian; Listener comment regarding the best way to explain why Trend Following should play a considerable part in all portfolios.

01:14:33 \\u2013 Dave; Question 4: When using multiple lookback periods, should risk per trade always stay the same?

01:16:02 \\u2013 Yohan; Question 5: Do you scale into a trade throughout the day,...'