SI63: Are stock pickers overrated?
Top Traders Unplugged
Niels Kaastrup-Larsen
4.8 • 712 Ratings
🗓️ 24 November 2019
⏱️ 87 minutes
🧾️ Download transcript
Summary
Is the concept of being a great stock picker overrated? Are Trend Following returns mean-reverting over time? Will Sharpe Ratios of Trend Following strategies permanently stay lower from now on? Is it becoming harder to be a successful discretionary macro trader? Should you use the same stop-loss for every position? We also give our thoughts on the process of adding a new market to your Trading Universe, ATR and how to apply it to your strategies, when a visit from the SEC can be taken as a compliment, why pain and suffering can sometimes be a necessary component of profitable Trend Following, Louis Bacon deciding to close down his funds, and much more.
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Episode TimeStamps:
00:00 – Intro
00:57 – Macro recap from Niels
01:55 – Weekly review of performance
08:22 – Top tweets
46:30 – Questions 1/2: Derek; How do you adapt Trend Following models for a constrained universe of markets? How do you educate fundamental Traders about quant investing?
53:31 – Questions 3/4/5: Jonathan; Does having a 5000 sample size backtest apply to each market in each system? Do you use out-of-sample testing? Do you optimize using multiple time-periods?
01:00:37 – Questions 6/7: Indrius; How do you use ATR? Do you take less risk per market as you trade more positions?
01:04:22 – Question 8/9: Brian; How many other Trend Following managers should you invest in? How would you seek out other managers to invest in?
01:12:13 – Question 10: Maurici; Do you use the same stop-loss for every position?
01:19:15 – Question 11: Michael; Why incur personnel costs if all you need is a computer to run your systems?
01:23:37 – Benchmark performance update
01:24:44 – Final thoughts; Is it becoming harder to be a discretionary macro trader?
Copyright © 2025 – CMC AG – All Rights Reserved
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2. Daily Trend Barometer and Market Score
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Transcript
Click on a timestamp to play from that location
| 0:00.0 | You're about to join Jerry Parker, Maritz Siebert, and Nealz Kastrup Larson on their raw and honest journey into the world of systematic investing and learn about the most dependable and consistent yet often overlooked investment strategy. |
| 0:15.1 | Welcome to the Systematic Investor podcast series. |
| 0:19.8 | Another week have flown by and Jerry Parker, |
| 0:22.6 | Mord Seber and I, Niels Karstallarsen, |
| 0:24.1 | are delighted to be back with this week's edition |
| 0:26.1 | of the Systematic Investor series |
| 0:28.7 | where we try to make sense of the reason market action |
| 0:31.8 | through the lens of a rules-based investor |
| 0:34.6 | as well as offering our thoughts and comments to the great questions |
| 0:39.0 | we get from our listeners. |
| 0:42.5 | Jerry Moritz, good morning, good afternoon. |
| 0:44.7 | How are you doing this Saturday in November? |
| 0:47.5 | Doing great. |
| 0:48.1 | Good morning. |
| 0:48.5 | Good afternoon. |
| 0:49.5 | Yes, hi, guys. |
| 0:50.3 | Doing well. |
| 0:51.4 | Yeah, great. |
| 0:52.0 | Cold here in Richmond, so. |
| 0:53.8 | Yeah, it's that time of year, isn't it? |
| 0:55.6 | Yes. |
| 0:57.4 | You know, I was trying to think of something interesting to pick at for this week, |
... |
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