At the end of the day, what trend following offers is the best type of risk control, as long as it's reasonable leverage, reasonable 10, 15% targeted return.

But with the massive diversification, long and short, the trailing stops and the stop losses and determining your trades based upon the price only, this is the best way to go to battle in these markets and try to make a fair profit and limit the drawdowns.

This is Jerry Parker, founder and president of Chesapeake Capital, and you're listening to My Year In Review on Top Traders Unplugged.

Imagine spending an hour with the world's greatest traders. Imagine learning from their experiences, their successes, and their failures.

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Welcome to Top Traders Unplugged, the place where you can learn from the best hedge fund managers in the world,

so you can take your manager due diligence or investment career to the next level.

Here's your host, veteran hedge fund manager, Niels Kostrup Larson.

Welcome back, Jerry, for this review of 2014, where we look at the big events from the point of view of your trading strategies. I want to explore the ups and the downs as well as the big takeaway from

what can only be described as a great year for systematic trading strategies in general. But as we

know, just because you're systematic, it doesn't mean necessarily that your trading strategies

deal with market events in a similar way. So I'll be excited to hear how you fared. But let's just jump right into it.

Tell me about 2014 from your perspective. How did the year evolve, both from a trading point of view

and maybe also from your firm's point of view? Well, thank you, Neels. It's good to hear your voice again. I was. Yes. Well, thank you, Neal's, it's good to hear your voice again.

I was.

Yes, I, well, 2014 was another nice year, and the trends were there and persisted in a lot of the different

sectors.

It's always better to have a lot of nice small moves or a lot of nice moves and

lots of different markets that allows us to profit from our trading strategy that trades

over 100 markets and has relatively small positions on in lots of of those markets and we get the great diversification

of on the upside and the downside and so um great great year in the dollar again uh where we

were able to participate in a lot of the currency markets that benefited, our turn following approach benefited

...