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:

Salem Abraham on The Derivative Podcast

Trend following whitepaper

VaR controlled European Trend thread

Roy Neiderhoffer on The Derivative Podcast

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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Re-Release: 6 - Modest is Hottest with Bethany Geringer