Today, we examine the intriguing dynamics of systematic investing, focusing on the theme of volatility sizing and its implications for trend following strategies. We discuss how volatility often expands during profitable trades, highlighting the importance of managing risk through dynamic sizing compared to static approaches. We explore the interplay between equities and managed futures, emphasizing how these strategies can complement each other while navigating the complexities of correlation risk. As we look ahead to 2025, the conversation touches on broader economic themes, including inflation volatility and its potential impact on investment strategies. With insights from recent research, the episode provides valuable perspectives for investors seeking to understand the evolving landscape of systematic investing.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

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Episode TimeStamps:

01:05 - What has caught our attention recently?

02:13 - Industry performance update

03:48 - Our takeaways from 2024

09:20 - How different speed has performed in different markets

13:25 - Has market correlation been lower than usual this year?

14:15 - Concluding on 2024

15:55 - Interesting news in the ETF space

18:29 - Key takeaways from the Hedge Nordic Roundtable 2024

20:18 - Optimism for the managed futures space?

23:10 - A historical perspective on volatility sizing

30:50 - How different styles of trend following work and perform

35:51 - When is long vol a good strategy to use?

37:41 - The challenges of trend following as a strategy

41:36 - Our perspective on running portable alpha

49:15 - Where does portable alpha sit in a portfolio?

51:59 - Tweaking your trend following portfolio to accommodate equities

54:06 - Thoughts on going into 2025

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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 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

Disclaimer

SI326: Volatility and Trends: What 2024 Held for Trend Followers ft. Katy Kaminski

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