SI147: The Perfect Exit Strategy ft. Moritz Seibert
Moritz Seibert joins us today discuss the benefits of stripping down your trading approach as much as possible, the various ways to exit a hugely profitable trade, the different forms of research related to your investing approach, simplification vs over-complication, the acceptable amount of margin per trade, spread-betting using a Trend Following strategy, and if you should trade all markets the same way or tailor to each market accordingly.
In this episode, we discuss:
The benefits of simplifying your trading approach as much as possible
Optimal exits from hugely profitable trades
How to engage in related to your investment approach
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00:00 - Intro
02:28 - Macro recap from Niels
03:53 - Weekly review of returns
11:01 - The commodities reflation trade and Moritz’s trade in Lumber
14:32 - Q1 & Q2; Andreas: How do you justify your fee structure? What long-term returns should we expect from a short-term CTA? At what point does enhancing a strategy become over-complicating it?
29:20 - Q3; Mark: What are some of the best look back periods?
34:13 - Q4; Frank: Do CTAs place any importance on the Commitment of Traders report?
41:14 - Q5; John: What is a normal amount of margin that CTAs use?
42:30 - Q6, Q7 & Q8; Babek: Should you trade all markets using the same approach? How do you deal with downside risks once a large profitable uptrend is established? Should position size be increased if the number of open trades is less than the maximum?