Normal
Trend-following systems are designed to take every signal, losing on most trades (70% or so), winning on a few (30% or so), with small losers and big winners.I think that this is dependent on the markets traded. I cannot take all the signals given when I scan 500 stocks using a long term system since I don't have that much money. If I was only following 20 stocks would definately be able to take all signals.I am reading Way of the Turtle at the moment and it looks like it will offer some good insights in terms of drawdowns and trend following systems.
Trend-following systems are designed to take every signal, losing on most trades (70% or so), winning on a few (30% or so), with small losers and big winners.
I think that this is dependent on the markets traded. I cannot take all the signals given when I scan 500 stocks using a long term system since I don't have that much money. If I was only following 20 stocks would definately be able to take all signals.
I am reading Way of the Turtle at the moment and it looks like it will offer some good insights in terms of drawdowns and trend following systems.
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