Pearl of Wisdom
From a recent Financial Times story comes a pearl of trend following wisdom:
“David Harding at Winton Capital Management says his managers adjust the model systematically every month, no more, no less. “What you do not want to do is wait until you are in a beastly draw-down when you are having lots of problems with clients and say: ‘What we have discovered is a new thing that fixes the problem’. That’s what the marketing people tend to want but that is not the correct thing to do,” says Mr Harding.”
When you are on a losing streak, don’t start trying to reinvent the wheel. That’s David’s strong point.
