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TTU42: Why You Need this Trading Strategy TODAY ft. Kathryn Kaminski of AlphaSimplex – 2of2
6th November 2014 • Top Traders Unplugged • Niels Kaastrup-Larsen
00:00:00 01:05:49

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Welcome to Part 2 of our conversation with researcher and co-author of one of the definitive books on trend following. In this conversation, we dive into the the models that she used in writing the book, as well as her thoughts regarding risk management, what you should be asking a manager during due diligence, and what the future holds for the managed futures industry.

Thank you for listening and welcome to the second part of our talk with Kathryn Kaminski.

In This Episode, You’ll Learn:

  • What Kathryn looks at when evaluating the track records of managers.
  • Her thoughts on the recent performance of trend followers.
  • About price range compression.
  • If she has a favorite statistic to look at when analyzing a manager.
  • How she and her co-author came up with the trading strategy that they use in their book.
  • Why the exit from a position is just as important as the entrance.
  • What trend leakage is.
  • Her views on how inflation and other environmental changes affects trend following strategies.
  • About diversification.
  • About risk management; how Kathryn defines risk and what is important to look at in risk management.
  • Kathryn explains the topics of hidden and unhidden risk.
  • What kind of drawdowns should be expected from a trend following model.
  • A discussion of the drawdowns that trend followers have experience in the last few years.
  • Seeing drawdowns as a buying opportunity.
  • How to detect if a manager’s models and system has stopped working.
  • The biggest challenge for the CTA industry right now.
  • What she would ask of David Harding.
  • What questions investors should be asking of managers when doing their due diligence.
  • What personalities traits a good trend following manager should have.
  • Her thoughts on regulation, especially for smaller managers.
  • What her plans are for the future and how she sees the managed futures industry going forward.

Resources & Links Mentioned in this Episode:

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

Follow Kathryn Kaminski on Linkedin.

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.

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