Ep. 1027: Performance Data with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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Taking Short Positions Objectively Is Crucial
The ability to take short positions objectively is absolutely crucial as a strategy. With a relatively low sharp ratio, it needs to be wellr by investors so the size of positions is in line with their particular risk tolerance. The sceptics and critics always view high volatility as only bad. Trend follower jason russell says it well, volatility matters when you feel it. All the charts, ratios and advanced math in the world mean nothing when you break down, vomit or cry due to the volatility in your portfolio. I call this the vomitility threshold. Understanding your threshold is important, for it is at this point that you lose all confidence and throw in the towel. But if you can get
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