Artwork for podcast Top Traders Unplugged
VOL10: Why We All Need Volatility ft. Cem Karsan
2nd February 2022 • Top Traders Unplugged • Niels Kaastrup-Larsen
00:00:00 01:22:54

Share Episode


Hari Krishnan is joined today by Cem Karsan, to discuss feedback loops across different markets, the decision to manage outside money, how institutions make trading decisions, the global macro effects from COVID-19, the importance of dealer flows in the markets, the feedback loop between options and their underlying assets, and approaches to delta hedging.


EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool

In this episode, we discuss:

  • How market behaviour is often intertwined
  • Why Cem chose to manage outside capital
  • The thinking behind institutional market moves
  • How the global pandemic affected markets
  • Dealer flows
  • Feedback loops
  • Delta hedging

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here.

And you can get a free copy of my latest book “The Many Flavors of Trend Following” here.

Learn more about the Trend Barometer here.

Send your questions to

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

Follow Hari on Twitter.

Follow Cem on Twitter.


Episode TimeStamps:

00:00 - Intro

02:17 - Cem’s background, and current work

19:18 - The decision to manage outside money

24:06 - The trades that institutions like to make

30:22 - Feedback loops within markets

34:17 - The dynamic between futures and options

51:15 - Using Econophysics to find hedging methods

53:40 - Building various volatility models and research using toy models

57:05 - Approaches to Delta hedging

01:00:11 -Changes to qualitative features of overnight indices

01:03:12 -Investment products on the VIX and effects on the S&P 500

01:10:09 -The feedback loop between inflation, deflation and central bank rate policies

01:20:01 -Whether or not there is an asymmetry between deflation and inflation risk

Copyright © 2023 – CMC AG – All Rights Reserved


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 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

Privacy Policy