Ep. 92: The Cheat Sheet with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
The Importance of Risk Aversion in Trading
William Eckhart: I've been involved in the development of a theory of trading. This is an attempt to begin with a few fairly evident first principles and by a chain of rigorous deductions, derive answers to questions about optimal procedures in trading. The project is far from completed, but I believe that in its broad outlines, that its broad outlines have emerged. Here's the rule or axiom. It should be fairly obvious that if traders are this much alike that whatever is optimal for one should be optimal for the other. And for these two traders the optimal course of action should be the same. That's the axiom.
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