In partnership with:
CME Group
Eurex

60 The Systematic Investor Series – November 3rd, 2019

This week, we cover some of the dangers of ‘Home Bias’, and the benefits of diversification mixed with good risk management. We also discuss the differences between common Trend Trading and Systematic Trend Following, why investors tend to hold on to losing positions longer than winning positions, why people being hopeful with losses and afraid with profits may be the reason for why Trend Following works, Dunn’s Capital’s recent milestone of 45 consistent years in the business, why Trend Following strategies are more than just the ‘perfect hedge’, ways that Trend Following can be applied to life, and we touch Abbey Capital’s recent article regarding Trend Following performance over the current decade, compared to previous decades.  Questions answered this week include: Should long and short entries be symmetrical?  Should you limit position sizing in particular markets?  What do you define as a small loss?

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Episode Summary

0:00 - Intro
1:05 - Macro recap from Niels
2:20-  Weekly review of returns
9:00 - Top tweets
35:05 - Questions 1/2: David; Should a bearish strategy mirror a bullish strategy (i.e. 100 day hi/lo entry for both)? Should you expect bearish strategies to do as well as bullish strategies?
39:45 - Question 3: Walter; Do you have position size limits on individual contracts?
44:15 - Question 4: Neil; What is the definition of a “small loss”?
49:50 - Performance recap
50:55 - Discussion of Abbey Capital white paper

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