Trend-following models do seem to benefit from a "lose pants" kind of approach. The problem is in stomaching the inherent volatility that comes with that. The benefit is the long-term robustness it appears to have. Everything is a tradeoff and there's no perfect solutions.
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Trend-following models do seem to benefit from a "lose pants" kind of approach. The problem is in stomaching the inherent volatility that comes with that. The benefit is the long-term robustness it appears to have. Everything is a tradeoff and there's no perfect solutions.