Ep. 491: Brian Christian Interview with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
00:00
How to Ride Your Winners Cut Your Losers
The win stay part of it is momentum almost. It's kind of like just follow the momentum. You don't necessarily know why. And that's very counter to human intuition I believe. The basic logic at least if you're thinking about the formal version of the problem is you know if at time t let's say it made sense to go with a certain choice a certain restaurant certain airline you name it. If it already made sense to do that and then you do it and it pays off well it can only make more sense to do it again because it can only raise your lifeYou know your estimate of it paying off in the future. That said I want to jump around a little on
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