Ep. 1035: Long and Short Systematic with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Blackshoal's Model Is Still in Use
The black shoal's model, it's still in use. So even though that systematic underestimation of risk is well known by people like yourself, it'sstill in use. But i think the same should be more and more true with economics and finance now through two channels. One is the availability of data and the possibility to make experiments on dataassimilations. With even without data, you can do simulations. You can invent worlds of your people trading according to some rule, or firms producing according to serten rules. And then just run the simulation and see what happens. Some of the rules just don't work, that don't represent at all what is seen out there.
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