Ep. 887: A Trend Following Firehose with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Small Losses
" trend following systems invariably have a win loss ratio less than 50% often well less than 50%. I was trying to explain what I do to some friends over the weekend and I said, my system wins 38% of the time. You can always see they look in their eyes and they go, this guy is a complete idiot," he says. "If your average win is much larger than your average loss, you can lose more than half the time and still make money"
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