The Mis Risk Management of Mean Reversion Systems

Mean reversion systems are the kind of horror that we dislike on this podcaste negative skew cathey, they make steady profits and they make sharp losses. So what i've donei in in the book, is to use a trend following filter, effectively, to a can o do the risk management for that system. It will only overdo these universion or trades in the general direction of the slower trend. And so it'll buy when the trend comes off slightly and sell above the trend. But it will go short the overl trenders up. This makes it a little bit more correlated with tren following, which, ofviss, isn't as good. But on the

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