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Top Traders Unplugged

SI79: A historical volatile week put into perspective ft. Robert Carver

Top Traders Unplugged

Niels Kaastrup-Larsen

Business, Business News, Investing, News

4.8670 Ratings

🗓️ 15 March 2020

⏱️ 102 minutes

🧾️ Download transcript

Summary

We’re joined on the show today by special guest Robert Carver, to discuss another historically volatile week in the markets, the differences between today’s bear market and 2008, how Robert defines portfolio diversification, how many markets a profitable Trend Following system should trade, the different types of strategies that Robert currently uses, the amount of truly uncorrelated assets available, and volatility scaling as a part of risk management.  Questions answered this week include: What causes you to modify your system over time, and how do you go about this?  What have you learnt from trading through previous crisis periods?  What are your thoughts on AI technology?

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Episode TimeStamps:

00:00 – Intro

01:09 – Macro recap from Niels

04:03 – Weekly review of performance

08:09 – Niels: How have you dealt with the recent volatility?

19:44 – Niels: What does diversification mean to you?

28:35 – Niels: How many markets can be considered too many for a diversified Trend Following system to trade?

41:10 – Moritz: What type of different strategies do you currently trade?

46:27 – Niels: What has helped you to do well during recently, especially during the recent market turmoil?

51:17 – Niels: Why have you chosen to trade different markets differently, rather than treating all markets the same?

01:03:18 – Seth; Question 1: How do you incorporate correlations...

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 journey into the world of systematic investing and learn about the most dependable and consistent yet often overlooked investment strategy. Welcome to the systematic investor podcast series.

0:25.8

More it's deeper than I, Neil's Kasbalas. I'm back with this week's edition of the Systematic Investor Series, which is our weekly

0:30.2

ongoing raw exploration of the world of rule space investing.

0:34.4

And of course, where we're also tried to take some of your questions.

0:38.1

But today we're going to deviate a bit from our usual format because we are delighted to be joined by a very

0:43.1

special guest, namely Rob Carver, who couldn't have come at a better time to discuss the pros and

0:48.9

cons of rules-based investing. So let me start by saying, welcome back to the show, Rob. It's been a while.

0:55.5

It has been. I think it's been about four years. So, yeah, it's really good to be back on.

1:00.6

Yeah, great, great to have you. And of course, Moritz, good afternoon to you. How are you doing?

1:04.7

Hey, I'm doing great. Good afternoon. Neals. Hello, Rob. Great to have you with us today. Thanks, Marks. Now, we have a lot of things to talk to you about Rob,

1:13.1

but since we usually do a quick run-through of the week

1:16.0

in terms of what took place inside the trend-finding portfolios that we work with,

1:21.6

maybe I can suggest that you grab an extra cup of coffee

1:25.1

while Marge and I just do a quick run-through

1:26.9

and when we'll be

1:27.7

straight back just talking with you about all things systematic trading I guess so quick run

1:37.4

through for me I mean of course it was a historic week that just came to an end in terms of

1:42.0

market moves not seen since the financial crisis,

1:46.7

and some one-day moves, not seen since the stock market crash in 1987.

1:52.2

Despite a very strong finish on Wall Street yesterday, US stocks still managed to finish down

1:58.0

between 10 and 17%, depending on which index you look at for the week.

2:02.4

German stocks finished down 17% for the week.

...

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