I liked Jayce Nugent's question about edge erosion based on more participants and Brent's answers, "It hasn't impacted me." I agree with this. Trend trading is psychologically hard to trade that it has a well built in edge protection mechanism.
RM is key. Non-normal distribution make big wins possible, but they are still only in the tails so RM is key to keep you alive to benefit when they come around
4:45 I agree with; "it needs to be clear on what the tool or indicator is telling you, however, you have to set rules that you think will work, then back test these rules. If it works then you trade it to the T. I have to indicator that tells me when to trade, and one that tells me how wide my stop loss and take profit should be. I use the probabilities and odds of my back test to decide on the amount (%) of capital to allocate to the strategy. I also program these strategies so I don't mess with it or deviate from the strategy. If anyone would like their strategy as an algo, let me know.
![[Blueprint] Create a Simple Trend Following System · Nick Radge](http://i.ytimg.com/vi/EUUd2kq1Mh4/mqdefault.jpg)
![002 Brent Penfold discusses trading principles, money management, risk of ruin and more [AUDIO ONLY]](http://i.ytimg.com/vi/ExUR1Ni0Fm4/mqdefault.jpg)
What was your #1 takeaway from Brent today? Share it here!
I like how he mentioned how valuable it is to look at strategies that have a lot of out of sample data behind it
I liked Jayce Nugent's question about edge erosion based on more participants and Brent's answers, "It hasn't impacted me." I agree with this. Trend trading is psychologically hard to trade that it has a well built in edge protection mechanism.
@@jamesclark7461 - thanks for sharing!
RM is key. Non-normal distribution make big wins possible, but they are still only in the tails so RM is key to keep you alive to benefit when they come around
I love going back and listening to your show, Andrew. I get so much more out of each episode the second time through.
great content
4:45 I agree with; "it needs to be clear on what the tool or indicator is telling you, however, you have to set rules that you think will work, then back test these rules. If it works then you trade it to the T. I have to indicator that tells me when to trade, and one that tells me how wide my stop loss and take profit should be. I use the probabilities and odds of my back test to decide on the amount (%) of capital to allocate to the strategy. I also program these strategies so I don't mess with it or deviate from the strategy. If anyone would like their strategy as an algo, let me know.
thanks for sharing @Burrell
What was the name of the Donchian channel trend system?
Great stuff!
thanks joey, glad you liked it
Please you can add subtitles in the nexts videos.
Man, that's a great interview, subbed mate.