"Superior returns from superior risk management" - Laurent Bernut

[@BetterSystemTraderPodcast]

It's always fun chatting with Laurent, and he dropped some amazing nuggets of wisdom in this one. What was your #1 takeaway from Laurent today? Let us know what you think here.

[@vijaymirchandani]

His idea to adjust risk based on equality curve makes a lot of sense. I always feel Laurent is very underrated. His insights are up there with those from Basso et al. His ideas are worth a listen and a relisten several times over. Andrew, great job with the interview and keep up the great work.

[@rodrigogarciagorostizaga7222]

I’m a quant trader and this is the best podcast I have ever seen from around 200 podcasts I have watched great content and great way to show his systematically way to analyze markets and treat position size. Unique

[@BetterSystemTraderPodcast]

thanks, glad you enjoyed it

[@offensivearch]

Laurent Bernut is solid gold

[@Thekingcalibra]

There is so much alpha in this interview. this points me in the right direction for improving my strategies.

[@BetterSystemTraderPodcast]

cheers king!

[@aaronvillegas1098]

Absolutely incredible value. I've watched this 3 times already.

[@BetterSystemTraderPodcast]

cheers Aaron, glad you enjoyed it!

[@lb1789]

Thank You Aaron, Thanks for the invite. Honoured to be member of your community

[@quarkinjapan]

Laurent Bernut is such a gold mine, his book on short trading is very interesting.

[@BetterSystemTraderPodcast]

agreed, he's one of my favourite guests!

[@maluzfilm1136]

I just came across this one. I'm five minutes in and this is so hilarious! I really appreciate it when you and your guests bring in some personality and enthusiasm to the otherwise mechanical stuff we're dealing with. Keep it coming, thanks!

[@BetterSystemTraderPodcast]

cheers @maluz, glad you enjoyed it!

[@tradingcolombia1840]

i have decided to watch all of your videos .

[@BetterSystemTraderPodcast]

nice idea colombia, enjoy! :-)

[@joey86bu1]

Thank you for making learning fun guys!

[@BetterSystemTraderPodcast]

cheers joey, glad you enjoyed it!

[@58_yesilgul]

The thing that I didnt understand is, first we calculate EMA of equity curve then calculate the second derivative of that EMA and it shows us a fluctuating line so we are using that line in order to gear up or down right ? or are we using maxdd in order to calculate second derivative ? I really wonder that question..

[@milleranalytics]

Seems like a fixed percentage of your NLV would do a similar thing - scale your position size in and out as your account is growing or in drawdown. I do this approach with small position sizes and with margin and what I find is when my strategy is working, I'm in a lot of positions at once due to margin and when it's not I'm in fewer positions and the bet size is smaller due to the drawdown. I've been very happy with this approach to risk management thus far.

[@BetterSystemTraderPodcast]

thanks for sharing Ryan

[@lb1789]

Thank You Ryan, but allow me to respectfully disagree. A fixed percentage does not react to winning and losing streaks. This method provides a smooth transmission between trading max risk during regular times and slam the brakes as soon as drawdowns perk up

[@milleranalytics]

@@lb1789 I think it depends on how it's applied. As an example, in my account I can be invested ~200% with leverage when the market is working with my strategy (max risk) but as soon as the market turns on my strategy (and drawdowns start perking up as I stop out), I'm all cash using this fixed percentage rule. So the end result seems similar to me. But it a lot of it is also likely based on the strategy. I could see how that wouldn't be the case with a strategy that didn't stop out. I'm typically trading on intra day timeframes, so this shift can happen relatively quickly and respond to market dynamics and risk.

[@oleksiynovak9362]

Great podcast, very insightful. Is there a way to see the mt4 indicator ?

[@BetterSystemTraderPodcast]

hey aleksey, contact the guys at tradeview.com.au, they should be able to point you in the right direction

[@abhimanyukucheria]

Got confused at the minimum risk and maximum risk 34:39 to 40:00 Can someone explain.

[@valueray]

Cant find the Tradingview training he is talking about a couple of times. Do you mind sharing a link where i can find it?

[@BetterSystemTraderPodcast]

hi matze, contact the guys at tradeview.com.au, they should be able to point you in the right direction

[@almelnik]

I have to know what this guy puts in his tea.

[@akulbansal5316]

Great interview. This is my 5th time watching it. Laurent mentions his book. What is the name of the book, and how can I buy it?

[@BetterSystemTraderPodcast]

hi Akul, the book hasn't been released yet, but it's scheduled for this year so it may be soon!

[@cnaccio]

I love this guest lol; he’s so damn funny!

[@BetterSystemTraderPodcast]

hey @charles - laurent is quite a character! :-)