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Hari Krishnan is joined today by Dave Dredge, to discuss how long-volatility strategies can improve on the traditional 60/40 portfolio, the concept of ‘participate and protect’, the importance of understanding why compounding is the ultimate goal, the ‘always good weather’ portfolio, trading Bitcoin volatility, being a ‘value buyer’ of volatility, mechanisms for taking profits, and how to size portfolio allocations properly. In this episode, we discuss: How to improve on the traditional 60/40 portfolio Dave’s concept of ‘participate and protect’ The importance of compounding Dave’s ‘always good weather’ portfolio Long-volatility Bitcoin strategies Value investing in the volatility space Methods for taking profits Sizing portfolio allocations Follow Niels on https://twitter.com/toptraderslive (Twitter), https://www.linkedin.com/in/nielskaastruplarsen (LinkedIn), https://www.youtube.com/user/toptraderslive (YouTube) or via the https://www.toptradersunplugged.com/ (TTU website). Follow Hari on https://twitter.com/HariPKrishnan2 (Twitter). Follow Dave on https://www.linkedin.com/in/david-dredge-9493ba1b/ (LinkedIn). IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written https://www.toptradersunplugged.com/Ultimate (here). And you can get a free copy of my latest book “The Many Flavors of Trend Following” https://www.toptradersunplugged.com/flavor (here). Learn more about the Trend Barometer https://www.toptradersunplugged.com/resources/market-trends/ (here). Send your questions to info@toptradersunplugged.com And please share this episode with a like-minded friend and leave an honest Rating & Review on https://www.toptradersunplugged.com/reviewttu (iTunes) so more people can discover the podcast. Episode TimeStamps: 00:00 - Intro 02:01 - How did you end up in the long-volatility sector? 04:55 - How options used to be considered as a redundant trading method 07:53 - Do you have any idea why the Bitcoin skew is so high and flat? 08:56 - What does it mean when you say you consider yourself a value-buyer of volatility? 10:15 - Do you have any notion how to mix the various positions you warehouse? 15:46 - How do you source good ideas, and has living in Singapore given you an edge for this? 27:12 - Can you talk about the Taliban’s use of the ‘Sandpile Theory’? 33:13 - Are there more opportunities for you globally now, then there used to be? 40:51 - What are your mechanisms for taking profits? 47:19 - What’s your view on paying for convexity in your positions? 51:13 - Do you engage in skew trades? 52:41 - How do you think about low-vol? 55:49 - How do you size allocations to your long-vol strategy? 01:01:49 - Closing thoughts from Dave?