Top Traders Unplugged

Want to build a computer that makes money?Quest Partners LLC has a long, robust track record with their systematic trading approach.They utilize a different strategies from many of their peers and have diversified their product range to include equity programs both hedge and long only.At the core of it all is their philosophy on focusing on what investors need. They provide solutions for investors rather than a purist strategy.Leading the way is our next guest on Top Traders Unplugged, Nigol Koulajian.In This Episode, You’ll Learn:How growing up Armenian provides a filter for the way Nigol perceives the marketsHis experience at Anderson Consulting and how he ended up working with Solomon Brothers by chanceWhy Nigol spend time at Colombia Business School programming and building modelsWhat Nigol thinks of Value at RiskHow Nigol found himself as a risk arbitrage manager despite his passion for CTA strategiesHow Nigol navigated beneficial detours before finally partnering to co-found Enterprise Asset Management in 1994About the founding and growth of Quest Partners from inceptions in 2001 to +760$ million in 2014The dangers of an increased correlation between alternative strategies designed to protect against trouble in traditional investment and the traditional asset classes themselvesLearn about self reinforcing feedback loop and how managers of growing AUM are forced to allocate to factors that are doing well (but perhaps doing well by chance)About the tight, automated business infrastructure of Quest Financial PartnersAbout the shift in volatility expansion and how to measure itResources & Links Mentioned in this Episode:Investors Business Daily – The finance newspaper which inspired Nigol in the early days3 Research Pieces from Quest that specifically examine factor drifts that could effect the returns of CTAsLearn about Sharpe RatioA specific trading model that trades the S&P and 30Y Bonds if it’s down 3 days in a row, with a stop-loss and profit target (Full testing and code in the link).BTOP50 – the index that seeks to replicate the overall composition of the managed futures industry with regard to trading style and overall market exposureLearn about David Harding, one of the largest alternative investment managers in the worldRead this interesting article about transcendental meditation and NigolNigol’s Foundation to promote studies on eastern religious philosophies and YogaFollow Niels on Twitter, LinkedIn, YouTube or via the TTU website.Follow Nigol Koulajian on Linkedin.IT’s TRUE 👀 – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “The Many Flavors of Trend Following” here.Learn more about the Trend Barometer here.Send your questions to info@toptradersunplugged.comAnd please share this episode with a like-minded friend and leave an honest rating & review on iTunes so more people can discover the podcast.

How would it feel to identify trades no one else you know is looking for?Our guest is back and this interview is all about carry trades, mean reverting environments, merger arbitrage, volatility arbitrage, tail hedges and how to become the best trader possible. It’s quite likely there is something in this interview which will help propel you forward as a hedge fund manager or in your research of managers.Welcome back to the second part of our interview with Chief Excutive Officer of Future Value Capital, Roman Lutz.-----50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HEREIn This Episode, You’ll Learn:Simple Models used by Future Value Capital to implement trend followingHow they utilize carry tradesThe third area of models: Tail HedgesLearn about how to carry potentially large value variance swaps while keeping the premium for holding them downWhere the variance exchange swaps derive from whether from OTC with counterparts or constructed using exchange listed productsLearn about Credit Support Annex (CSA)Risk management procedures at Future Value CapitalThe purpose for tactical asset allocation meetings and the decisions that are madeThe common performance drivers and if there is a dominant part of the portfolio that is responsible for the performanceHow Roman translates the complex trading strategy of Future Value Capital to investorsHow Future Value Capital implements trades and why they consider it a key strength of their programHow much AUM would be optimal running the program or if the potential is unlimitedHow to create certainty around the risk Future Value Capital holds and how they define that riskWhat Roman Lutz considers to be one of the riskiest thing that could happen in the financial systemWhat to expect in terms of returns and drawdown when investing in Future Value CapitalHow to realize when a model is no longer workingPersonal habits that contribute to Roman’s success in managing a hedge fund-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to info@toptradersunplugged.comAnd please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Roman Lutz on Linkedin.Copyright © 2024 – CMC AG – All Rights Reserved----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 Here2. 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 Here3. Other Resources that can help youAnd 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 HerePrivacy PolicyDisclaimer

Can you implement well established hedge fund strategies in a systematic way?Future Value Capital has been researching this for years, before they started trading. They are unique because of  how they simplify and automate complex Risk Premia.But we aren’t the best at explaining their systems. Roman Lutz, the Chief Financial Officer of Future Value Capital will explain it all in this interview.-----50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HEREIn This Episode, You’ll Learn:About Merger Arbitrage and How investors can ProfitWhat criteria they look for in mergers, such as Market Cap, Deal Size, Liquidity etc.What currency markets Future Value Capital entersThe app. 15 strategies they use and how many sub strategies they may haveThe origin stories of where the Future Value Capital strategy derived from.Understanding the typical way to build a derivative businessWhy the average correlation of a hedge fund with equities has shifted from 0.6 to 0.9 from the 1990’s to today.How Scottish Whiskey tasting can kickstart long term business relationshipsAddressing the “Black Box” label that many systematic programs hasWhat environment Future Value Capital’s systems are best suited to operate withinThe business structure of Future Venture Capital and the alliance with Trium CapitalAbout the post Madoff and additional regulatory environment investors are operating inHow Roman Lutz developed the shared business management and split the overhead cost with other emerging fund managersThe negative side effects of sharing hedge fund management business practices with other firmsA ballpark figure for the cost of being part of the Trium Manager Alliance and get the services required to be able to operate as a regulated and well run firmHow Roman and partners develop new plans in regards to where the economy is going and how to develop plans to manage funds going forwardHow merger arbitrage and volatility arbitrage connect implied and realized volatilityHow to buy realized volatilityWhen to deploy and when not to deploy the realized volatility trades (when volatility starts to trend)Main categories from a strategy point of view – Trend Following for exampleHow Future Value Capital uses trend following-----Resources & Links Mentioned in this Episode:Listen to the past episode with Marty Bergen from Dunn Capital mentioned in regards to the higher correlation between traditional alternative investment space and the traditional assets.Lars Jaeger owner of Alternative Beta Partners – Wrote extensively about the lack of alpha to people hunting it. 4x more assets are looking for alpha than alpha is available in the market.Listen to our previous guest Karsten Schroeder from Amplitude Capital on the value of systematic trading vs. discretionaryLearn more about the determining implied market volatility with VIXFollow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to info@toptradersunplugged.comAnd please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Roman Lutz on Linkedin.Copyright © 2024 – CMC AG – All Rights Reserved----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 Here2. 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 Here3. Other Resources that can help youAnd 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 HerePrivacy PolicyDisclaimer

Imagine if your assets under management went from $721 million to $50 million….Would you have the courage to stick with your system?Our next guest was able to weather that storm and come out even stronger. In fact, he gives credit to the fall in assets because it was an important component to improving their processes and efficiency today.We’re excite to share with you, the second part of my interview with CEO of Systematic Alpha Management, Peter Kambolin.-----50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HEREIn This Episode, You’ll Learn:How many markets Peter trades and the number of different spreadsThe three points during a day in which volatility is elevatedWhat triggers an exit from a trade when profit levels haven’t been reachedHow Systematic Alpha Management makes decisions relating to sizing market positionsThe number of daily trades Systematic Alpha implementsHow much of the P/L comes from the hedge component of spread decisionsWhat kind of Risk Budgets that Systematic Alpha Management runsHow to drawdown profile has changed over the last few yearsEstimating and predicting Black Swan eventsHow Peter personally balances the challenging feelings of managing a portfolio in drawdownExploring mean reversion and how the hedge ratios change dailyOn the value of being located in the heart of New YorkThe biggest challenge for Peter in running Systematic Alpha ManagementPeter’s opinion on why success in the CTA industry has shifted from the United States of America to EuropeWhy individuality is critical in success in the CTA industryPeter Kambilin’s biggest failure and what he learned from itSome fun facts about Peter that you probably would never have guessed-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to info@toptradersunplugged.comAnd please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Peter Kambolin on LinkedIn.Copyright © 2024 – CMC AG – All Rights Reserved----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 Here2. 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 Here3. Other Resources that can help youAnd 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 HerePrivacy PolicyDisclaimer

Peter Kambolin is the common sense CEO behind Systematic Alpha Management, an Award Winning CTA Firm which has come through the tremendous market forces of the past 10 years. Their staying power is a testament to their success as conscious, ruled based traders.This episode is about his hero’s journey from immigrant origins in Moscow to founding a lasting, top financial service company headquartered in New York City.-----50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HEREIn This Episode, You’ll Learn:About the effect of the 2004 internet bubble and how Systematic Alpha created a “market neutral” CTA strategy in responseWhat it’s like to win global CTA awards yet still have to hunt new business due to capital flows towards large investment firmsPeter’s story of moving from Moscow to New York and how he entered the finance industryThe surprising story of how Peter was inspired to start his own firm at 21 years of ageHow Peter and Alexi work together to maximize each others strengths, and control for each-other’s weaknessesAbout the transition from long term to short term CTA strategiesWhy living in New York yet playing in Miami helps stoke Peter’s creativityThe story of the dramatic period of March-August 2011 in which they experienced a drawdown that let to a drop in AuM from 721 million to 50 million due to investor redemptions.The effects of the coordination of global economic decisions by government on volatility and it’s effect on the overall environment for Systematic Alpha Management’s CTA programs.Why Peter considers Systematic Alpha to be a stronger firm after the steep drop in AUM they experienced in 2011.Where Systematic Alpha’s value proposition is and the importance of a CTA position in diversificationHow to get out of losing trades when liquidity is a problem-----Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.Learn more about the Trend Barometer here.Send your questions to info@toptradersunplugged.comAnd please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.Follow Peter Kambolin on LinkedIn.Copyright © 2024 – CMC AG – All Rights Reserved----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 Here2. 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 Here3. Other Resources that can help youAnd 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 HerePrivacy PolicyDisclaimer

Karsten Schroeder, Co-founder of Amplitude Capital, shares insights on short-term trading, risk management, market correlation, drawdowns, and the importance of teamwork in the CTA industry. They discuss the success factors of Amplitude, living outside financial hubs, and the evolution of European managers in the hedge fund sector.

Karsten Schroeder, Co-founder of Amplitude Capital, discusses the founding story of Amplitude Capital and their scientific approach to short-term trading. They explore the challenges of model decay and government interventions in market health. They also compare market specific models vs. models for all markets and discuss the effectiveness of trend following indicators in the short term space.

Jerry Parker, founder of Chesapeake Capital and the most successful Turtle ever, discusses the challenges of CTA strategies, the importance of analyzing sample size, how to handle emotions during drawdowns, the shift in the CTA industry, and their exciting experience in a movie with Jim Carrey.

Former Turtle trader Jerry Parker discusses his experience in the Turtle program, the transition to starting his own organization, and the evolution of Chesapeake's strategy. He also covers the importance of optimal loss in trading and addresses misconceptions about trend following strategies.

In this episode, Dr. Mathias Bucher, Co-Founder of AllMountainCapital, talks about stop loss, risk management, and exit strategies. He shares how he turns the stress of drawdowns into creative power. They discuss research cycles, business development, and market positioning. Dr. Bucher explains why they base their business in Wollerau and the challenges of growing a young CTA firm. He also talks about the industrialization of the global financial system and the human traits needed to excel in the CTA industry.