The Algorithmic Advantage

Eric Crittenden, Chief Investment Officer at Standpoint Funds, shares his insights on creating all-weather portfolios designed to withstand market unpredictability. He emphasizes a strategy that blends managed futures, global equities, and treasury bills for robust wealth preservation. Eric warns against the pitfalls of over-stabilizing equity curves, advocating for a simple yet effective approach to portfolio management. His unique perspective highlights the delicate balance between data-driven decision-making and the unforeseen nature of financial markets.

Today we spoke with Corey Hoffstein, a well-known market practitioner with a deep and broad knowledge across quantitative trading & trend following, but also across developing investment products for wider advisor distribution. I’m super interested in almost every aspect of the financial markets, because I feel like a broad and generalist knowledge helps me make better trading and business decisions. Corey hits the nail on the head when he says that a given industry participant may be making optimal business decisions which are sub-optimal trading decisions. If we are aware of this kind of behaviour, it can help shape the way we trade. More than that, understanding market participants, infrastructure, technology, business motivations, and so on, is critical to effective trading. At a basic level, this would include knowing the exact differences between the execution of a market versus a limit order for example. It builds from there, but the point is, it doesn’t hurt you to gain more and more knowledge of how the markets ‘actually work’. So much more over on the website: www.thealgorithmicadvantage.com

Gary Antonacci, a researcher renowned for his trend-following expertise, and Carlo Zarattini from Concretum Research, dive deep into a groundbreaking 100-year study. They discuss the impressive 18.2% annual return achieved through innovative strategies like volatility-based position sizing and channel breakouts. The conversation also touches on the importance of long-term data for refining trading decisions, the challenges of integrating mean reversion strategies, and how psychological factors influence investor behavior. A rich exploration of trading dynamics awaits!

Laurens Bensdorp, renowned for his multi-strategy diversification in trading, discusses the intricacies of balancing various trading philosophies. He shares his approach to designing complementary trading models, emphasizing the value of adaptability in market conditions. The conversation delves into the significance of mastering risk management, particularly during volatile periods. Laurens also highlights the role of technology in optimizing trading efficiency and the continuous evolution required for success in an unpredictable market landscape.

Join Jason Strimpel, a quantitative risk manager and tech leader, and Marsten Parker, a legendary systematic trader, as they dive into the art of back-testing in trading strategies. They explore different tools like Python and Real Test, comparing their strengths and weaknesses. The conversation highlights the critical role of understanding the mechanics behind back-testing, and they share insights on learning Python for trading success. Their discussion also emphasizes the importance of robust workflows and sanity checks to enhance trading efficiency.

Tom Basso, known as 'Mr. Serenity,' is a veteran trader who employs multiple strategies to maintain composure amid market chaos. In a turbulent trading climate, he shares his approach of balancing diverse strategies across various markets, ensuring no single position overpowers his portfolio. Tom emphasizes the importance of self-awareness and emotional regulation in trading, drawing on insightful anecdotes from his journey. His philosophy of adapting to volatility offers valuable lessons for traders aiming to stay grounded in uncertain conditions.

Andreas Clenow, a seasoned expert in algorithmic trading and author of influential finance books, shares insights on streamlined trading strategies. He discusses his journey from systematic trading to launching his new app, Hush, designed for young investors. Clenow blends storytelling with finance, emphasizing the importance of trend following and risk management. He explores innovative momentum trading strategies and the mechanics of fractional shares, aiming to simplify complex investment concepts for a broader audience.

Senior Portfolio Manager Dave Aspell from Mt Lucas Management shares insights on the firm's simple yet effective approach to trading equities and futures. Topics include the evolution of Mount Lucas, creation of the MLM index, portfolio allocation in macro fund management, and capturing the investor risk premium in the managed futures market.

Perry Kaufman shares insights on trading diversified strategies in futures & equities, emphasizing the need for longer calculation periods and advanced risk management. He discusses the differences between trading many markets versus concentrating on a few and the critical role of ranking candidates based on recent system performance. The podcast explores the unique perspective of trading strategies in both futures and stocks, highlighting the importance of system performance over market conditions for profitability.

Award-winning journalist Greg Zuckerman dives into Jim Simons' Medallion Fund secrets, highlighting the genius behind the unparalleled success of Renaissance Technologies. From using advanced mathematics and physics to collaborative trading strategies, delve into the power of data, pedigree, and innovation in quantitative finance. Explore Simons' unique approach to trading, emphasizing predictive models, market patterns, and his leadership style in creating a cohesive and successful fund.