This week, Richard Brennan from ATS Trading Solutions makes his debut on the show, and we discuss the complexity behind successful Trend Following strategies, momentum trading versus Trend Following, the importance of average win rate, how a weak edge can still lead to strong returns, deflationary environments and their past effects on the Trend Following models, which markets, and how many, to include in a profitable trading system, and how to find the perfect exit strategy with minimum risk.
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Top Traders Unplugged wins award for ‘Best Trading Podcast’ and features among the ‘Top 20 Best Investing Podcasts in 2020’ by The Investors Podcast 🏆.
00:00 – Intro
01:31 – A huge thank you to listeners of the show for leaving your 5-star reviews on iTunes
02:18 – Macro recap from Niels
04:23 – Weekly review of performance
10:24 – Q1; Kushro: Is there a way for the novice rules-based investor to reliably backtest their rules?
12:40 – Q2 & Q3; Danny: Can you give an example of how to trade multiple timeframes? How do I manage risk from unrealised profits & losses?
23:35 – Extracting an edge from markets
42:22 – Analysing win/loss rates
52:00 – Stops and position sizing
56:42 – Benchmark performance update
57:45 – Some big announcements