171: How to survive market sell-offs – Perry Kaufman

In this episode of Better System Trader, host Andrew Swanscott interviews Perry Kaufman about surviving market sell-offs, particularly in light of the upcoming US elections. Kaufman shares historical data on market behavior around election days since 1924, discusses the two types of price shocks and strategies for handling them, and explains the relationship between stock price and percentage change, advising against trading low-price stocks. The conversation covers hedging strategies, the impact of price shocks on backtesting, determining volatility levels, volatility parity, rebalancing, and portfolio volatility, providing listeners with actionable insights for managing risk and improving trading systems.