2 thoughts on “Jerry Parker's Trend Following Trading Discussion – 23rd September 2022”
My guess is Seykota meant how one calibrates the frequency, position-size, stop-loss and duration of a trade for a long-term trend following system is a subjective matter, it all depends on the trader and/or his investors.
I agree with Richard. Looking at the statistical distribution without considering the nuances of the rules that generated said distribution is to miss the point entirely – the rules matter more. The system merely updates your rules as new information comes in and as long as the results over time are in-model all is good. Distributions by themselves do not tell us as much as people think. In systems thinking quantitative analysis comes AFTER the thinking, it validates the rules and exposes sloppy thinking. Quantitative analysis alone is no substitute for hard and rigorous thinking.
Oleg, pitches in and always deviates from the topic. Breaks the continuity. We would Learn a lot more if only Jerry and Rich Brennan speak and discuses different topics. They have huge knowledge and experience and clarity. May be others can bring in questions and topics to be discussed…
My guess is Seykota meant how one calibrates the frequency, position-size, stop-loss and duration of a trade for a long-term trend following system is a subjective matter, it all depends on the trader and/or his investors.
I agree with Richard. Looking at the statistical distribution without considering the nuances of the rules that generated said distribution is to miss the point entirely – the rules matter more. The system merely updates your rules as new information comes in and as long as the results over time are in-model all is good. Distributions by themselves do not tell us as much as people think. In systems thinking quantitative analysis comes AFTER the thinking, it validates the rules and exposes sloppy thinking. Quantitative analysis alone is no substitute for hard and rigorous thinking.
Oleg, pitches in and always deviates from the topic. Breaks the continuity. We would Learn a lot more if only Jerry and Rich Brennan speak and discuses different topics. They have huge knowledge and experience and clarity. May be others can bring in questions and topics to be discussed…