Ep. 465: Sunrise Capital with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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How to Measure Leverage Risk Return
An MA-R ratio is simply, the best way to understand. It gives you a number and then that number gives you a sense of what you have to risk to try and achieve that return right? That's the essence with that numbers telling you. The higher the MA-R, the better right because let's say your MA-R is formed from beating a sexually high one,. You could in essence risk an expected 5% max equity drawdown or an experienced one up to that point to try and target a 20% return.
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