The following interview is between Trade Center Inc. and Dean Hoffman:
Trade Center Inc.. What is your entry method to the market? Is it price-based or do you rely on some proprietary mathematical formula? Is position sizing done in the same method? How important is position sizing? What do you base position sizing on?
Dean Hoffman. My primary entry is based on some form of trend recognition. It is not merely a function if price but rather a combination of algorithms and filters. I also use money management overlays for position sizing considerations, as it’s a critical component.
Q. What was the path that led you to this? Why does this work for you?
A. Thousands of hours and over a decade of testing and real life experiences. This works for me because I feel it captures the markets movements in a way that has the best risk adjusted performance.
Q. How important are the entry and exit points for you? If the trend is that robust, does it diminish the importance of the entry and exit?
A. Entry’s and exits are much more important than they used to be. In the past, simple long-term approaches that captured long term trends worked fine. At that time the exact day of entry and exit wasn