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SI308: Major Market Moves - What Now, Trend Followers? ft. Nick Baltas

Aug 10, 2024
Guest
Nick Baltas
Nick Baltas, a trend following expert, joins the discussion to dissect recent market rotations and their effects on trading strategies. He explains how trend followers adapted early to July's shifts and analyzes the consequences of abandoning short fixed income trades. The conversation reveals how investor perceptions of trend following have evolved and stresses that there’s no one-size-fits-all strategy. Baltas also delves into the changing landscape of risk management in trend following, drawing parallels to past market events.
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INSIGHT

Exposure Shifts

  • Trend following systems don't typically react to short-term market fluctuations.
  • Exposures have shifted over the summer, impacting trend following strategies.
INSIGHT

Fixed Income Reversal

  • The biggest change in trend following has been in fixed income, shifting from short to long.
  • This reversed a long-standing trend and has implications for returns.
INSIGHT

Position Sizing Strategies

  • Dynamic position sizing actively adjusts positions based on market volatility.
  • Static position sizing maintains positions until a stop-loss is triggered.
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