Ep. 519: Another Mega Trend Following Episode with Michael Covel on Trend Following Episode
Michael Covel's Trend Following
00:00
The Dilates All Boats
Ripsaw is a no-no word of trend following, but it's because of what we know is. If you lose a dollar, it's harder to make back that lost dollar than it is to make a new dollar due to volatility drag. For example, if I lose 25% in the stock market, I don't need to make 25% to get flat. I'm going to make 33%. That volatility drag is really punitive. It is an additional price for being wrong. We've seen this before. If we live long enough, we'll see it again.
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