You're listening to Top Traders Unplogged, episode number zero zero six, where I continue my conversation with Tushar Chande, co-founder and head of research at Roe Asset Management.

This episode is sponsored by Saxo Bank and Swiss Financial Services.

Welcome back to Top Traders Unplugged, where the best traders in the world come to share their experiences, their successes, and their failures.

Let's rejoin the conversation with your host, veteran hedge fund manager, Niels Kastra Plarsen. regardless of what our testing may have been,

you can see and look at a real time track record

and see that we have controlled our risk very well on a daily basis

as well as on a drawdown basis for the entire program.

And so once the position is on, I guess there are two schools of thoughts.

Some managers actively manage their position size and some people leave them as is.

What's your preferred way of doing things

and why did you choose to go this route?

Yes.

Again, if you remember, Neil, so when we started off,

we said that we're trying to think like or capture

the behavior of discretionary traders.

So if you're a discretionary trader,

your typical style is you're

a little hesitant to get in, you're slow to get in. Once you get in, you may get in with

a large size or a small size based on your feeling about what the trade is going to do.

And then some discretionary traders will adjust that position on day to day, but most

will just leave it alone. And so that's the same thing as trading with a very wide stop.

And then suddenly something will happen in the environment.

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