SI149: Model Anxiety & Algorithm Aversion ft. Mark Rzepczynski

Mark Rzepczynski joins us this week to discuss ‘algorithm aversion’ and the science of how ‘model anxiety’ shows investors to be naturally wary of rules-based systems. We also discuss how to evaluate momentum data, how a busy week for market news can still be a quiet week for Trend Followers, the benefits of moving away from ‘peak complexity’ as soon as possible, why having too many filters can expose a trader to large opportunity costs, the optimal percentage amount of risk per trade, as well as portfolio construction versus signal generation and which is more important.-----EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder ToolIn this episode, we discuss:How behavioural finance leaves investors under-allocated to Trend Following strategiesHow to perceive momentum dataWhy the steady flow of market news often has little value for Trend FollowersEmbracing simplicityThe need to avoid too many filters in your systemHow much should be risked per trade-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to [email protected] please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Mark on Twitter.Episode TimeStamps:00:00 – Intro01:49 – A huge thank you to listeners of the show for leaving your 5-star reviews on iTunes03:02 – Macro recap from Niels04:48 – Weekly review of performance11:59  – Q1; James: What are your views on momentum indicators diverging against price action?24:56  – Q2; Frank: What is your view on the relationship between the stop and the look-back period?28:52...