059: Reducing Drawdowns with Scott Phillips
Better System Trader
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Trenfalling
One of the main ideas behind trend following though, is to hold on for those big winners to pay for all the losses that you incur along the way. So doesby this approach of reducing the standard deviation of returns, by your cutting the position a little bit when it's in profit, do you find then that scus the towards the losses? Because you're still taking losses at, you know, full position size, but you're taking a re profit. I it reduces, it reduces the profits substantially, but not as much as you think. But what it does is reduces drawdowns a lot more. Trenfalling, for example, regularly has three losing years in a row
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