SI152: Love Your Rules, But Not Your Positions ft Jerry Parker
Jerry Parker is on the show with us today to discuss Ethereum’s recent rise after a new ‘hard fork’, auto-correlation and its effects on Trend Following strategies, how trading extra markets can improve performance, drawdowns as a key to profiting from huge trends, how Trend Following firms who try to be too unique often end up underperforming, the power of pure Trend Following versus over-optimisation, why ESG investing should also take into account human rights issues, why you should love your trading rules but not your positions, and how trading in smaller sizes can lead to much bigger returns.
Also check out my interview with Turtle Trading legendary mentor Richard Dennis here.
In this episode, we discuss:
The recent comeback in crypto markets and trading crypto futures
Thoughts on autocorrelation
The benefits of trading a wide range of markets
How over-optimisation can result in underperformance
Why ESG investing should consider human rights issues as well as environmental
Why your rules are more important than any one position
How decreasing position size can increase a system's profits