This week, we discuss how doing less can ensure bigger & better results over time, average client holding periods versus the recommended amount of time, why short trades might be the essential part of a winning system, and why uniqueness is now a key requirement for today’s emerging managers. Questions we cover this week include: How far should your backtest go? Can emerging Hedge Fund managers still succeed in today’s environment? Should you adjust past data for volatility?
If any listeners would like to leave us a voicemail message to play on the show, you can do so here.
Learn more about the free-to-use Top Traders Unplugged Trend Barometer here.
You can download your free guide to Systematic Investing, and subscribe to our mailing list by visiting TopTradersUnplugged.com
Get a free copy of my latest book “The Many Flavors of Trend Following” here.
Send your questions to email@example.com
Follow Niels, Jerry & Moritz on Twitter:
And please share this episode with a like-minded friend and leave an honest rating & review on iTunes so more people can discover the podcast.
0:00 – Intro
1:21 – Macro recap from Niels
4:11 – Weekly review of returns
7:27 – Top tweets
51:16 – Questions 1: Dane; How far should your backtest go?
54:38 – Question 2: Neal; Do you have a minimum average daily volume when trading stocks?
56:24 – Questions 3/4: James; When using multiple entry signals, do you also use multiple exit signals? When setting up systems & doing testing, should you adjust past data for intended volatility-weighted position sizing? Can emerging managers within the hedge fund space still succeed, among pressure for low fees, the cost of running business, & the popularity of indexing?
1:05:18 – Performance recap