SI171: Machine Learning - Pros & Cons ft. Hari Krishnan
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 712 Ratings
🗓️ 19 December 2021
⏱️ 70 minutes
🧾️ Download transcript
Summary
Today we’re joined by special guest, Hari Krishnan, to discuss the advantages and drawbacks of machine learning-based trading strategies, successful funds that utilizes machine learning investment techniques, defining machine learning and comparing it with artificial intelligence, how Trend Following can best integrated with machine learning, the history of machine learning in the investment world, and we also answer some of your questions, such as how to select signals for a smaller trading account.
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In this episode, we discuss:
- The reasons for and against machine learning trading strategies
- If any funds have successfully implemented machine learning
- What defines machine learning
- The history behind machine learning-based trading styles
- How to manage smaller trading accounts, when it comes to signal selection
- How to time the entry into trend following funds
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Episode TimeStamps:
00:00 - Intro
01:25 - Feel free to share this podcast with like-minded friends using this link:
https://top-traders-unplugged.captivate.fm/listen
and a big thank you to those who have left a rating or review on iTunes02:38 - Macro recap from Niels
04:52 - Weekly review of returns
09:58 - Q1; Daniel: How do I choose which signals to take when too many arise for a small account?
15:21 - Q2; Mervin: Do you have any advice for finding low-risk entry points into new TF funds?
25:31 - The history of machine learning and how to define it properly
44:24 - How can machine learning be profitable during rare market moves when the data sample size for these moves is so small?
48:41 - Which specific areas of Trend Following are more suited to Trend Following? How risky is it to blindly follow a machine learning strategy?
54:20 - Do you classify machine learning as a form of artificial intelligence?
55:55 - Have you come across any machine learning funds that have done well for a reasonably long period of time?
01:00:48 - Tell us about the recent experiment that Man Group carried out using Machine Learning to select a perfect (and sustainable) Christmas dinner?
01:04:44 - Announcement of future special Top Traders Unplugged episodes hosted by Hari Krishnan, as well as special episodes of the Systematic Investor featuring all the usual co-hosts over Christmas
01:06:18 - Benchmark performance update
Copyright © 2025 – CMC AG – All Rights Reserved
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1. eBooks that cover key topics that you need to know about
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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
Transcript
Click on a timestamp to play from that location
| 0:00.0 | You're about to join Jerry Parker, Maritz Siebert, 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. |
| 0:22.5 | Welcome and welcome back to this week's edition of the Systematic Investor series |
| 0:26.0 | with Harry Kristen and I, Niels Kastel Larsen, where each week we take the pulse of the global |
| 0:30.0 | markets through the lens of a rules-based investor. |
| 0:33.5 | If you're new to the show, let me start by saying welcome with the hope that today's |
| 0:37.2 | episode will trigger your curiosity and hunger for learning, enough to check out the backcast If you're new to the show, let me start by saying welcome with the hope that today's episode |
| 0:37.5 | will trigger your curiosity and hunger for learning. |
| 0:40.4 | Enough to check out the back catalogue and listen to the past episodes that you may have missed, |
| 0:44.7 | like my conversation with Rob last week, where he revealed a huge change to his strategy |
| 0:49.8 | that allows him to effectively trade 140 markets with a small account size |
| 0:55.9 | using a very interesting selection process. |
| 0:58.9 | So if you missed that episode, I invite you to go back and check it out. |
| 1:03.0 | As you know, the aim of the podcast is to inspire you as an investor. |
| 1:08.1 | We want to be provocative but without being polarizing. |
| 1:12.1 | We want to challenge consensus narratives |
| 1:15.0 | and to learn how to think critically about investing |
| 1:17.9 | in an uncertain world |
| 1:19.3 | and to provide you with a framework and a mindset |
| 1:22.8 | that we believe is truly robust. |
| 1:25.1 | And if you want to help us achieve our goal, what we ask of you is that if you can comment, |
... |
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