SI15: Has too much Diversification hurt performance in recent years?

Top Traders Unplugged

Niels Kaastrup-Larsen

Investing, Business News, News, Business

4.8 • 712 Ratings

🗓️ 22 December 2018

⏱️ 90 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Welcome to The Systematic Investor series. It’s a great privilege for me to invite you to a behind the scenes conversation between some of my favorite systematic investors namely Jerry Parker and Moritz Seibert. We get on a “call” each week to discuss the events that took place through the lens of a Systematic Investor and how the trading strategies we work with are reacting. It’s a raw and honest exploration and we hope you will join and be part of…not least by sending us questions that we can discuss.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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Episode TimeStamps:

00:00 – Intro

01:50 – Weekly review of performance

05:50 – Top tweets

19:30 – Question 1: Michael; Are trend followers relaxed (in terms of personality) in general?

23:00 – Question 2: Michael; Why does TF not work on stocks work?

28:30 – Question 3: Michael; How do you measure single stock correlation?

33:05 – Question 4: Nick; Do you ever front run your systems?

35:00 – Question 5: David; Have you ever been through a market similar to this year (2018) and how did it turn out/what did you learn?

38:45 – Question 6: Can you give us a proven TF strategy (ex. Donchian)?

43:05 – Question 7/8: Timothy; Has too much diversification hurt TF in the last decade? Should TF focus on markets that are trending?

52:10 – Question 9: Anish; How do you identify relative strength and accordingly allocate capital between different asset classes?

59:55 – Question 10: Does the intensity of trends change over time?

01:04:30 – Question 11/12: Have the markets changed during your time as a trader and if so how? If a market has been trending is it more likely to continue trending than to reverse?

01:16:10 – Question 13: Nitesh; Is Short-term TF impossible now or does it need to be done differently from medium to long-term?

01:18:00 – Question 14: Dave; How do you select a universe of single stocks for TF?

01:21:20 – Question 15/16: Ted; What are the parameters you use around Nat Gas? With high volatility swings, how do stay in a position?

01:25:50 – Benchmark performance update

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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 Here

2. 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 Here

3. Other Resources that can help you

And 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 Here

Disclaimer

Transcript

Click on a timestamp to play from that location

0:00.0	You're about to join Jerry Parker, Maritz Seabert, and Nealz Kostrup Larson on their raw and honest
0:07.3	journey into the world of systematic investing and learn about the most dependable and consistent
0:12.3	yet often overlooked investment strategy. Welcome to the Systematic Investor podcast series.
0:19.8	Jerry Parker and I, Niels Kostop Larson and I delighted to be back with you on this week's
0:24.9	edition of the Systematic Investor Series, which is our weekly open-ended and quite raw
0:30.7	exploration of the world, a rule-based investing, and where we also try and take some of your
0:36.2	questions.
0:37.9	Moritz is not able to join us this week,
0:40.2	as I think actually he's out skiing this weekend, if I remember correctly.
0:45.6	So it's just you and me, Jerry.
0:47.6	Good morning to you.
0:48.8	Good morning, Niels.
0:51.0	Now, end of another week, and what a week it's been with kind of the Fed-defying President Trump,
0:59.8	US equities heading to bare market territory, uncertainty and chaos when it comes to Brexit.
1:06.5	The list is pretty long this week, actually.
1:10.2	So that may give us some, you know, a little bit to talk about when it comes to
1:16.4	trend following and how we, how we fared this week and so on and so forth.
1:23.2	And the good news is we've got a lot of questions this week, which we will try to deal with as best we can.
1:32.3	So why don't we jump into it?
1:35.4	Do you want to start out with kind of a quick review from your point of view in terms of the trends we saw and how sort of trend following seen by the eyes of you, Fed?
1:51.9	Sure.
1:52.6	It was a great week for trends.
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