Hey everyone and welcome to the first edition of the Best of Top Traders series.

In this week's edition, I went back to a conversation that Catherine Kaminsky and I had with

Nigel Kalagin, the founder of Quest Partners, in which he shared his wealth of experience,

including some life lessons and even his take on the modern

scientific trading systems that we are used to today now one of the topics

which I particularly liked and would like to share with you here was his view

on the VIX and volatility trading within the managed futures industry and

also outside the industry.

So without further ado, let's jump right into today's topic. And if you want to listen to the

full episode, just go to top traders on plugged.com forward slash 102. I want to stay on on a topic that, you know, I think, I think 2017 probably was the year where

to many investors, VIX really became known, right? Everybody suddenly talked about the VIX,

right? And it's been a little bit under the radar beforehand.

And so what do you, what's your opinion, you know, what is the impact of the growth

of VIX sort of volatility trading in sort of the, you know, in our industry, but maybe also outside the industry?

Sure. So certain investments that don't have a great risk adjust returns can temporarily

turn into amazing bubbles because the return stream has certain characteristics which gives

time for other investors to come in. So it becomes very self-reinforcing,

like a positive feedback loop. And there's ways where in certain industries you can reinforce that

intentionally. If you're an activist investor, you put on a position and then you say, here,

I got my position, other people come in. You can do great. Effectively, it's like a pump and dump of penny stocks in the 80s, right?

So cryptocurrencies are a little bit the same thing.

They're being promoted.

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