The Algorithmic Advantage 002 - Validate for Yourself! The Science of Trend Following - Richard Brennan
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Aug 22, 2023 Richard Brennan, an expert in systematic trend following, discusses the application of the scientific method in economics and the complexity of trading. He emphasizes the importance of strategy creation, testing, and deployment in trend following, as well as maximizing diversification and using AI in trading projects. Additionally, he explores the use of chat GPT for selecting uncorrelated markets and building enduring strategies through algorithmic portfolio construction.
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Early Career Exposure
- Richard Brennan's early career involved diverse roles like compliance and fund administration.
- This experience exposed him to risk management and various investment processes.
Science-Based Market Approach
- Brennan's science background challenged traditional economic theories, leading him to trend following.
- He views markets as complex adaptive systems, applying multidisciplinary approaches.
Competitive Landscape
- Brennan views markets as a competitive landscape dominated by predictive traders focused on pattern recognition.
- He believes the majority of market participants are predictive traders.