This is Trend Following Radio, where great thinking comes alive.

Nobel Prize winners, legendary traders, bestselling authors, and the pros that know what drive us irrational human beings.

I am your host, Michael Coval.

Not filtered, raw, honest.

That's my passion.

You know those Pavlovian moments?

You hear a piece of music and you know where you were at that point in your life.

If I hear CCR, I hear that song. I hear down in the corner another one of their songs.

I'm six years old in my father's Jeep going to school first grade. Completely tattooed on my mind. But I love that

line. A calm before the storm. You absolutely have no ability to know when the hell that storm is coming.

But you have to be prepared. I want to take a few minutes from a great presentation that I found from Cliff Asnes, AQR. He is easily found with a quick

Google search, tons of white papers. Very large fund. I'm not here to promote him,

but I am here to promote his style of thinking, his clarity of thinking. Now, Cliff is not

just a trend following trader. That's one thing his firm does do. They definitely have a trend following component.

But what his firm really does, what they're really known for, quantitative strategies.

The way they apply trend following, they apply it in a quantitative manner. Not unlike a lot

of different managers out there, they do the

same thing. Cliff's firm also uses quantitative strategies across many different styles of trading,

not just trend following. That's the kicker here. You know in my world, I'm dead on. I'm in that

niche. It's trend following or bust.

Cliff broadens it out, but he stays rigidly focused on the systematic part of the equation,

which, as you're about to see in a few minutes, is smart. It's just smart to be quantitative. Because at the end of the day, what is

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