>while position sizing has a big effect on your bottom line, it’s the timing of your averaging operation and the ability for that instrument to turn around is the key to sustained success.
Agree.
>Trading in an unhedged dynamic fashion is a recipe for disaster as many futures systems witnessed recently.
Not necessarily true for all. In my opinion hedging certainly helps in long-term trading, but for short-term trading it is less important.
> The use of options as an hedge is a standard strategy. There is absolutely nothing new here. So, I’m very surprised that anyone would even ask for a proof that this strategy works…
Not proof that it can work, but proof that you can make it work. So
far all your system have eventually come back…triumphant as that
may be.
