Ep. 678: A Peaceful Easy Feeling 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 really wants your views on 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 do. The farther you go into the trade, I'll have a question on pyramitting that someone asked.Michael: Pyramitting means you're getting in later in the trade and expecting it to continue to go your way. Your initial return to risk ratio is the highest the day you get into the trend following trade.
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