SI55: Aligning your investments with the best odds and why the Sharpe needs salt

In this week’s episode, we discuss why Sharpe Ratios should be taken with a pinch of salt, the benefits of using a Trading Coach, why consistently aligning with the best odds may be a better strategy than trying to predict future price moves, DUNN Capital’s recent award from HedgeWeek magazine, why ‘the standout hedge fund traders this year have been computer-driven Trend-Followers’, and why Risk Management is more important than strategy or philosophy.  Questions answered this week include: Why are commodities seen as more risky than equities?  Can you use Options in a Trend Following strategy? Should you keep your stop-loss proportionately the same across different time-frames?  Are there any markets to be avoided by new managers? ----- EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website. IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here. And you can get a free copy of my latest book “The Many Flavors of Trend Following” here. Learn more about the Trend Barometer here. Send your questions to [email protected] And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast. -----

Episode TimeStamps: 00:00 – Intro 01:05 – Reading of various podcast reviews 03:00 –  Macro recap from Niels 06:20 – Weekly review of performance 10:15 – Discussion of Mercer Trend Following paper 18:15 – Live event update 10/26/19-10/27/19; Special Guest: Denise Shull 20:35 – Top tweets 36:10 – Questions 1/2/3: Eric; Do you hedge with OTM options? Can you use options to trade trends? Will HFT algos negatively impact TF systems? 41:40 – Question 4: Sam; Should stop distance (ATR multiple) adjust with the trend speed? 47:50 – Question 5: Noobe; Are there any contracts a new manager should avoid? 54:20 – Question 6: Clay; With minimal trading activity, what do TF do all day? 01:00:50 – Question 7: Giangitano; Should you have real stop orders in the market (vs stop...