Summary: <br> This week, we discuss the differences between recognizing risk and ‘warehousing’ risk, why Fundamental Investors could benefit from implementing Trend Following rules, Diversification as the most important component of risk management, what Traders can learn from Weightlifters, and the delicate balancing act between simple, simplicity, & complexity. Questions we answer this week include: Is Systematic Investing a form of betting? How do you define a Trend? Should you scale into positions?<br> If any listeners would like to leave us a voicemail message to play on the show, you can do so <a href="https://www.speakpipe.com/ttuvoicemail">here</a>.<br> Learn more about the free-to-use Top Traders Unplugged Trend Barometer <a href="https://www.toptradersunplugged.com/resources/market-trends/">here</a>.<br> You can download your free guide to Systematic Investing, and subscribe to our mailing list by visiting <a href="http://www.toptradersunplugged.com/">TopTradersUnplugged.com</a><br> Get a free copy of my latest book "The Many Flavors of Trend Following" <a href="http://www.toptradersunplugged.com/book">here</a>.<br> Send your questions to <a href="mailto:info@toptradersunplugged.com">info@toptradersunplugged.com</a><br> Follow Niels, Jerry & Moritz on Twitter:<br> <a href="https://twitter.com/TopTradersLive">@TopTradersLive,</a> <a href="https://twitter.com/rjparkerjr09">@RJparkerjr09</a> and <a href="https://twitter.com/moritzseibert">@MoritzSeibert</a><br> And please share this episode with a like-minded friend and leave an honest rating & review on <a href="https://itunes.apple.com/us/podcast/top-traders-unplugged-niels/id888420325?mt=2">iTunes</a> so more people can discover the podcast.<br> <br> Episode Summary<br> 0:00 - Intro<br> 1:11 - Origins of Black Friday<br> 2:43 - Weekly review of returns<br> 11:45 - Top tweets<br> 40:52 - Questions 1/2: Michael; Can the number of trades a system signals, give insight as to how well optimized the system is? Is there a guideline for the number of trades a system should be signalling, for each chosen timeframe (such as Daily/Weekly)?<br> 45:34 - Question 3: Richard; Comment- ‘No deterioration in the overall compound growth-rate of long-term Diversified Systematic Funds, post-2000.’<br> 46:53 - Questions 4/5: Bing; Why don’t we risk more per trade? Is trader psychology the main reason for the importance placed on position sizing?<br> 53:21 - Question 6: Jacob; Can you give examples of strategies that ‘warehouse’ risk?<br> 56:41 - Question 7: Nathan; How do we define the parameters of a Trend?<br> 1:01:37 - Question 8: Chad; Do you scale into a position, or go straight to the chosen max risk of equity per security?<br> 1:05:51 - Questions 9/10: Chris; What should I do with surplus cash once my system reaches its maximum number of positions allowed to be traded simultaneously? Has the average margin requirements for Bitcoin changed?<br> 1:11:00 - Performance recap<br> 1:24:44 - Final thoughts; Is it becoming harder to be a discretionary macro trader?<br> <br> Subscribe on:<br> <a href="https://www.toptradersunplugged.com/itunes" target="_blank" rel="noopener noreferrer"></a> <a href="https://www.stitcher.com/podcast/top-traders-unplugged" target="_blank" rel="noopener noreferrer"></a> <a href="https://soundcloud.com/toptradersunplugged-com/" target="_blank" rel="noopener noreferrer"></a><br>
