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Episode Summary
0:00 - Intro
1:20 - Weekly review
7:00 - Top tweets
32:30 - Question 1: Karl; Where would you start if you wanted to become a Trend Follower?
36:30 - Question 2/3: Paul; Considering return volatility and investor tolerance, how do you help investors determine their optimal allocation to Trend Following? Have your personal volatility preferences changed over time?
45:45 - Question 4: Antonio; If historical drawdowns have no bearing on the future (as the podcast has said), how do you know your system won’t blow up?
50:10 - Question 5: Antonio; How do you calculate future expected returns with a TF system?
55:20 - Question 6: Antonio; If you can’t estimate future returns, why bet TF will keep working in the future?
59:30 - Question 7: Antonio; Should recent performance of TF systems influence future return expectations?
1:03:10 - Question 8: Brian; How does a CTA choose a company to sell their products?
1:05:00 - Question 9/10: Samuel; Based on correlation, what level of diversification is enough? What will cause Jerry to adjust his risk?
1:09:00 - Question 11: Samuel; How often should positions be adjusted based on account equity?
1:15:15 - Question 12: Brian; Why do investors hold CTA returns to a higher standard (versus other hedge funds)?
1:18:50 - Question 13: Seth; What are the unique “sectors” that drive diversification in a TF system?
1:22:40 - Discussion of Bloomberg article on TF failing – suggested by Christian
1:35:00 - Performance recap
