Another pertinent lesson that Hull applied to blackjack, as well as trading, is that if you have a winning method, you must have the faith to keep applying it even during losing periods. The trick, however, is to reduce the risk by reducing your bet or trade size so that the ratio between risk and equity stays relatively constant. Although Hull is predominantly an arbitrage trader, he occasionally takes directional trades, which have tended to be quite successful. Hull’s rules for directional trading, although not explicitly stated, can be inferred from the interview: Trade infrequently and
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