Ep. 835: A New 2020 Book with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Return to Risk Ratio
Mark Fraser has a question and kind of a quickie, but he really wants your views on initial capital at risk versus unrealized gains. Michael: My wide view is when we did studies of return to risk, at every point in a trend following trade, it's a very interesting study that you would do. We'd measure return to risk every single day throughout the entire trend following trade. And we concluded without a doubt that the day you get into a trend followingtrade is the day when you return to risk ratio is the best.
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