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226: Does Adding a "Trend Filter" Improve Directional Option Selling Strategies?

The Option Alpha Podcast

CHAPTER

The Difference Between Trend Trading Strategies and Non-Trading Strategies

When you start looking at trend trading strategies, what you find is that they don't necessarily have top line capital improvements. The max drawdown for non-trend was 42.3% and you saw it. You could visually see some pretty wild rips and dips in this strategy. Strategy A basically stayed underwater the entire time that you traded from 2008 to 2015. But where I think that strategy B actually was an improvement is where it actually didn't stay underwater as long as strategy A did.

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