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177: Superior returns from superior risk management – Laurent Bernut

Better System Trader

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How to Scale Out a Trend Following Strategy?

The idea with a mean reversion guise is the value guis whatever they do, like for start outs or whatever. But the problem with the trend followers is to kiss a lot of frogs. This is the 20 20 hind sight. So how can you switch from e trend following mean reversion into something that combines the attributes of both? The idea there would be to truncate the man reversion part you see in this case. And then elongate the right tail, using ha tran following to consider two trades and scale out instead of scaling in.

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