
226: Does Adding a "Trend Filter" Improve Directional Option Selling Strategies?
The Option Alpha Podcast
How to Use a Trend Filter to Improve Your Call Selling Performance
The trend filter kept you out of selling short call spreads in the face of really reaching bull markets, which is exactly what you would expect it to do. And so that again is showing that adding that trend filter to this particular strategy did improve its performance. You had significantly less trades, about 100 less trades, which again makes sense. So you improved your win rate, but ultimately it ended up being a better strategy because you did not go through some significant big drawdowns.
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