I've read this idea in a few Quants interviews and articles. The quants are Dalio and Winton. Their fund mention something along the lines of targeting a % of return or % of drawdown. What do they mean by that? How do you go about targeting a certain level of return with the lowest risk possible? The first thing I considered was MPT, but then given that these are trend followers, I doubt they believe it the idea very much.
Any idea where I should start digging? I am sure there is some sort of theory and research in other fields that can be applied here, but I cant seem to figure out what.