- QUOTE: As I read through the Blox forum, I find that several of the more professional people
are trading multiple systems to smooth out the drawdowns that come from long term trend following
systems. Also if I look at succsessful commodity fund managers on IASG, I see similar kinds of things
(lower drawdowns and fewer losing months with the normal fluctuations in returns). I have traded
long enough to be comfortable with the drawdowns and I have my heat rate set to where my
worst case drawdowns are about 30% in the system I trade. With that long introduction,
my question is, what types of systems would one trade along with a long term trend following
system to smooth the equity curve? END QUOTE
it might be preferable to let anyone and everyone chime in -- and to also let everybody see the answers.
Please feel free to post research results, test data, passages from books, articles, guesses,
things you once heard somebody say, opinions, and half baked thoughts about the question above.
It's a free for all, don't be shy.
EDIT - fixed grievous (!!) spelling error