SI171: Machine Learning - Pros & Cons ft. Hari Krishnan
Top Traders Unplugged
The Pros and Cons of Trend Following
There are lots of advantages to standard trend following. You can look at trends with the human eye and compare them to your signals. Many systems use the same signals across market. There's very little risk of overfitting the data if you do it in a reasonably parsimonious way. And then i have a couple of commons, but yo yet.
Today we’re joined by special guest, Hari Krishnan, to discuss the advantages and drawbacks of machine learning-based trading strategies, successful funds that utilizes machine learning investment techniques, defining machine learning and comparing it with artificial intelligence, how Trend Following can best integrated with machine learning, the history of machine learning in the investment world, and we also answer some of your questions, such as how to select signals for a smaller trading account.
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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE
In this episode, we discuss:
- The reasons for and against machine learning trading strategies
- If any funds have successfully implemented machine learning
- What defines machine learning
- The history behind machine learning-based trading styles
- How to manage smaller trading accounts, when it comes to signal selection
- How to time the entry into trend following funds
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Episode TimeStamps:
00:00 - Intro
01:25 - Feel free to share this podcast with like-minded friends using this link:
https://top-traders-unplugged.captivate.fm/listen
and a big thank you to those who have left a rating or review on iTunes02:38 - Macro recap from Niels
04:52 - Weekly review of returns
09:58 - Q1; Daniel: How do I choose which signals to take when too many arise for a small account?
15:21 - Q2; Mervin: Do you have any advice for finding low-risk entry points into new TF funds?
25:31 - The history of machine learning and how to define it properly
44:24 - How can machine learning be profitable during rare market moves when the data sample size for these moves is so small?
48:41 - Which specific areas of Trend Following are more suited to Trend Following? How risky is it to blindly follow a machine learning strategy?
54:20 - Do you classify machine learning as a form of artificial intelligence?
55:55 - Have you come across any machine learning funds that have done well for a reasonably long period of time?
01:00:48 - Tell us about the recent experiment that Man Group carried out using Machine Learning to select a perfect (and sustainable) Christmas dinner?
01:04:44 - Announcement of future special Top Traders Unplugged episodes hosted by Hari Krishnan, as well as special episodes of the Systematic Investor featuring all the usual co-hosts over Christmas
01:06:18 - Benchmark performance update
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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:
1. eBooks that cover key topics that you need to know about
In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here
2. Daily Trend Barometer and Market Score
One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here
3. Other Resources that can help you
And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here
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