Ep. 400: Special Tom Basso Compilation Episode with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Importance of Return to Risk in a Trend Following Trade
Howard Fraser has a question and kind of a quickie but he's he really wants your views on uh initial capital at risk versus unrealized gains. Michael: When we did studies of return to risk at every point in a trend following trade it's a very interesting study that you would do. The day you get into a trend followingtrade is the day when you return to risk ratio is the best the farther you go into the trade all the question on pyramitting that someone asked pyramitting means you're getting in later in the trade and expecting it to continue to go your way the return torisk ratio is not as good with that pyramid trade so we Pyramid it or added
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