Is Trend Following Dead? (Again…) A Deep Dive with Crabel’s Grant Jaffarian
The Derivative
Optimism for Trend Following in Uncertain Markets
This chapter discusses the enduring relevance of trend following strategies in today's unpredictable markets. The speakers highlight the foundational principles of trend following and express optimism about the potential of Managed Futures for investors.
In this revealing episode, Jeff Malec sits down with Grant Jaffarian from Crabel Capital Management to dissect the current state of trend following. They explore the declining performance over the past 6 months, challenges in maintaining positive convexity, and the critical need for innovation. Grant offers candid insights into how trend following has evolved, why its sharpe ratios have decreased, and why he remains optimistic about its future. From discussing market execution nuances to quantum mechanics, this conversation provides a deep, unfiltered look at one of alternative investing's most intriguing strategies. Whether you're an investor, researcher, or market enthusiast, this episode offers a provocative examination of trend following's past, present, and potential future. SEND IT!
Chapters:
00:00-00:45=Intro
00:46-08:19= Trend Following’s in the Family: Exploring Grant Jaffarian's Background and experience
08:20-21:44= The Algo Trade Execution Game: Navigating Latency, High-Frequency Trading, and Trend Following Strategies
21:45-37:03= The Evolving Landscape of Trend Following: Analyzing Sharpe Ratios, Assets, and Market Changes
37:04-47:24=Trend Following Under Pressure: Adapting to the Changing Dynamics of Positive Convexity
47:25-01:02:04= Innovating Trend Following: Developing Dynamic Strategies for Market Adaptation
01:02:05-01:14:07= Trend Following's Esoteric Markets: Expanding Beyond Traditional Boundaries
01:14:08-01:23:13= Looking deeper into Quantum mechanics & Staying True to the Strategy
From the episode:
Follow along with Grant on LinkedIn & X(Twitter) @GJaffarian and check out crabel's website at crabel.com for more information!
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Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visitwww.rcmalternatives.com/disclaimer
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