SI137: Can AI Trading Be Better Than Classical Methods? ft. Mark Rzepczynski - a podcast by Niels Kaastrup-Larsen

Today, Mark Rzepczynski returns to the show to discuss how Trend Following allows investors to own more risky assets, Systematic Global Macro versus Trend Following, the process of how an investor digests new information, classical Trend Following versus modern Trend Following with AI methods, whether rock-star hedge funds such as ARK Invest can end up being too greedy when seeking AUM, why it can be a good idea to avoid timing the different exposures of your portfolio as much as possible, some of the possible reasons behind Dunn Capital’s successful near 50-year track record, and thoughts on position-sizing in relation to historic volatility.
In this episode, we discuss:
How a Trend Following approach allows safer access to risky markets
The differences between Systematic Trading based on macro data versus based on price-only
How a top trader should efficiently process new data
Modern AI-based Trend Following versus classical Trend Following
Whether the biggest hedge funds in the world fall victim of being too greedy for AUM
Why you should avoid 'timing the market'
The possible secrets of success behind Dunn Capital's near 50-year track record
Follow Niels on https://twitter.com/toptraderslive (Twitter), https://www.linkedin.com/in/nielskaastruplarsen (LinkedIn), https://www.youtube.com/user/toptraderslive (YouTube) or via the https://www.toptradersunplugged.com/ (TTU website).
Follow Mark on https://twitter.com/mrzepczynski (Twitter).
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 http://bit.ly/36bzny2%22%20%5Ct%20%22_blank (here).
And you can get a free copy of my latest book “The Many Flavors of Trend Following” http://www.toptradersunplugged.com/book%22%20%5Ct%20%22_blank (here).
Learn more about the Trend Barometer https://www.toptradersunplugged.com/resources/market-trends/%22%20%5Ct%20%22_blank (here).
Send your questions to info@toptradersunplugged.com
And please share this episode with a like-minded friend and leave an honest rating and review on https://itunes.apple.com/us/podcast/top-traders-unplugged-niels/id888420325?mt=2%22%20%5Ct%20%22_blank (iTunes) so more people can discover the podcast.
Episode TimeStamps:
00:00 – Intro
02:00 – Macro recap from Niels
08:46 – Weekly review of performance
13:28 – Swedish systematic macro-fund, IPM, closes after losing $4billion during the pandemic
28:37 – New style Trend Following with machine learning versus classical Trend Following
53:54 – Some of the reasons behind Dunn Capital’s successful near 50-year track record
01:05:03 – Q1 Raymond: What are some good methods for market selection, other than liquidity?
01:08:35 – Q2; Dirk: Have you found significant differences between volatility-based position-sizing and a one-size-fits-all approach?
01:17:10 – Benchmark performance update

Further episodes of Top Traders Unplugged

Further podcasts by Niels Kaastrup-Larsen

Website of Niels Kaastrup-Larsen