Great

You should invite him on again. I haven't heard from him in a while. He always has some great thoughts to share.

I’m still celebrating lol!

Really enjoyed this conversation as it covers so many aspects of street smart vol trading (a term I use to make the contrast with academic vol trading).

You had some very productive last couple of weeks with all the content you put out there, thanks for this and happy holidays!

It has always been great to see Jeff that you guys have also been providing a floor for emerging managers

Thanks Jeff and Peter, was interesting to hear more about these non-standard markets

17:32 thanks for the simple explanation 👍

Walker Joseph Lewis Deborah Perez Gary

Check out ZIVB, it's now paying 25% dividends.

Side rant about a side comment in this episode: The DFA mention of "not believing in momentum" isn't the position of DFA or the offshoot folks over in Avantis. The argument is that using an active momentum strategy rather than a passive screen greatly reduces the realized premium due to increased transaction costs. This isn't "sneaking it in", they talk about it openly. Factor investing itself has a greatly reduced premia compared to the literature once transaction costs are considered and the passive trade screen is a reasonable later on top of what they do since they already are fighting transaction friction.

Right. Folks need to be reminded that the S&P 500 isn't part of the Fed's mandate. I wish we returned back to the times when people did not react to their stock portfolios. Perhaps more people should have their money in a bank, GICs, bonds, or non-office real estate.

Thanks

This is pure gold

How does this only have 2.6k views!! And how does your channel not have more than 4.37k subscribers. Such good content.

Interesting and relevant episode!

It seems like your videos have great potential but are facing challenges in reaching a wider audience. Here are some possible reasons: 1. SEO Optimization 2. Target Audience Reach 3. Effective Use of Hash tags 4. Social Media sharing I can help with that. My info is on this very channel I'm using to comment.

Super interesting for me to listen to…love trading options but when I was about 30 after blowing through 200k that I’m far better with real estate effectively using mortgages as call options. The lack of liquidity in real estate makes it so I can’t get in my own way moving too fast like I do with options. One day I will learn the temperament and crush it because I know all the fundamentals a1 and I’m a self made guy. Taking that loss was the most humbling thing ever

Interesting interview, but I think Long Tail Alpha is not a legit competitor in the tail risk space. Jeremie doesn't understand some of the basics such as why NO legit tail hedger would buy 10% otm options or use 1 year 20% otm put spreads. Fat tails = more quiet times. This produces a probability distribution with higher peaks. In option terms, this means 10% otm options are a bad deal. Put spreads would be impossible to execute in a crash because buying back the short strike could cost a fortune. Also, one year options lack big convex payoffs. Need to be shorter. Still, this was worth watching and I wish everyone involved in the tail risk space good luck.

One question. Based on your discussion around 29:00. When you are talking to these people. Do they reveal their secret sauce ? Or you can assess people on a high level without revealing their core secret?

Very informative video! Please share the presentation deck. It would be very helpful.

Great interview, learned a lot about how physical markets work

Oofff I bet he would done well 2022-2024😂

Excellent I do like how you look at other asset classes when direct hedges are expensive. ! One question. On big down moves where your hedges work, when do you take profits ? I saw this with a fund I had where they nailed the financial crisis in Europe. Except they never cashed in. Basically they thought the world was going to end and they gave back most of their profits. If the system collapses buy a gun and a farm. Also agree with your opinion on gold. With big central bank buying they are looking at it as a hedge on paper money. I previously traded gold on the COMEX. The floor use to say never buy gold just look for a place to sell it but the tenor has definitely changed.

FIRST

🎯 Key Takeaways for quick navigation: 00:17 *📈 Panel introduction and overview:* - Introduction to the panel discussion during Hedge Fund Week in Miami. - Panelists include Trend following Legend Jerry Parker, Quant Rodrigo Gordo, replicator Bob Elliot, and options Guru Jay Petrick Kelly. - Discussion focuses on increasing accessibility of alternative investment strategies to more investors, regulatory changes, market innovations, and challenges in educating investors. 02:23 *💼 Day-to-day grind of investment professionals:* - Insight into the daily activities of investment professionals. - Quantitative fund manager's routine involves extensive data analysis and research, with a focus on long cycles of research and continuous refinement of strategies. - Trend Trader's approach emphasizes following trends in various markets, including single-name equities, for diversification and risk management. 04:53 *🔄 Trend following strategies and holding periods:* - Trend following strategies prioritize long-term positions based on computer-driven analysis. - Holding periods for trend-following strategies typically extend to about a year, guided by systematic approaches and historical data. 14:53 *🤖 Utilizing AI in investment management:* - Unlimited Fund focuses on replicating hedge fund strategies using AI and machine learning. - Emphasis on maintaining systematic investment processes, continuous research, and collaboration with advisors to optimize portfolio outcomes. - Challenges include addressing risk concerns and educating clients on portfolio diversification strategies. 19:06 *📊 Benchmarking hedge fund replicating ETFs:* - Discussion on suitable benchmarks for hedge fund replicating ETFs, aiming to outperform traditional hedge fund indices like the hfri AUM weighted basket while offering lower fees. - Benchmarking against hedge fund performance indices to demonstrate the effectiveness of ETFs in replicating hedge fund strategies. 19:47 *💼 Hedge fund strategies aim to bring fee Alpha to the market as an index product with lower fees.* - The focus is on providing fee Alpha to the market by charging significantly lower fees compared to traditional hedge funds. 21:11 *📈 Zega focuses on creating products for retail investors, emphasizing options-based strategies to capture market trends.* - Zega's products are designed for retail investors, incorporating options-based strategies to capture market trends. - Products like the QQQ ETF utilize options to generate income and align with retail investors' long-term investment goals. 23:25 *🔄 Zega's QQQ ETF utilizes zero DTE options to harvest time decay, offering an alternative income stream.* - The QQQ ETF employs zero DTE options to capitalize on time decay and provide an alternative income stream. - The fund aims to generate attractive yields for retail investors by leveraging rapid time decay of options. 25:32 *📚 Education is crucial for understanding and utilizing products like Zega's ETFs effectively.* - Zega emphasizes the importance of investor education, spending a significant portion of time educating clients on product intricacies. - Retail investors need to understand the nuances of ETFs and options to make informed investment decisions. 26:54 *🌐 Increased accessibility to sophisticated investment strategies benefits retail investors and broadens market opportunities.* - Accessibility to sophisticated investment strategies has increased, benefiting retail investors and expanding market opportunities. - Broadening access to various market slices through ETFs democratizes investing and aligns with historical trends of accessibility leading to success. 32:41 *🔍 Hedge fund replication aims to democratize access to sophisticated strategies previously limited to institutional investors.* - Hedge fund replication seeks to democratize access to sophisticated strategies, mirroring institutional investment approaches. - These strategies aim to provide retail investors with diversified, low-cost alternatives to traditional hedge funds. 38:54 *💼 Alternative investment accessibility challenges:* - Traditional investment mindset conditioned by equities and bonds. - Resistance to embracing alternative investments for diversification. - Difficulty in introducing complex structures to retail investors. 43:29 *📈 Increasing accessibility through options-based products:* - Derivatives rule enabling new opportunities in options-based products. - Accessibility to new investment strategies previously limited to accredited investors. - Challenges in managing expectations and risks associated with leverage and structured products. 45:40 *🗳️ Considerations for investment strategies in election years:* - Limited impact of elections on classic trend-following strategies. - Increased market volatility during election periods. - Focus on long-term asset allocation regardless of short-term political outcomes. 52:35 *🔄 Transitioning to the ETF business and operational challenges:* - Importance of distribution partnerships in launching ETFs. - Operational challenges in transitioning from hedge fund to ETF management. - Education and communication efforts required for investors and advisors regarding ETF trading strategies. 56:06 *📉 Managing expectations during periods of underperformance:* - Utilizing social media and video for transparent communication. - Addressing client concerns during periods of market outperformance. - Emphasizing long-term investment strategies and maintaining realistic expectations. 57:25 *🎓 Education and Communication Strategies* - Educating investors about diversification and alternative investments is crucial. - Using various mediums such as podcasts, white papers, and social media helps cater to different audiences. - Crafting memorable taglines and language aids in conveying complex investment concepts effectively. 58:30 *💡 Adapting Investment Strategies* - Reflecting on past market trends like zero interest rates and inflation helps shape future investment approaches. - Emphasizing the importance of diversified portfolios across various asset classes. - Integrating trend-following strategies with traditional investments like stocks for improved risk management. 01:00:52 *📈 Progression of ETF Education* - Despite advancements, ETF education is still in its early stages, with ample room for growth. - Short-form content like videos and long-form content like white papers serve different educational needs. - Continued innovation in ETFs and investment strategies requires ongoing education efforts to inform investors effectively. Made with HARPA AI

💘 "promosm"

🙌

Insanely good

This guy is going to blow up eventually. There is no reason to have 30% volatility of portfolio 🤷‍♂️ One outlier event, and he is out.

23:02 25:43

Looks like a job interview. A bit boring.

Great guest. Respectfully, would have been far better if the host had let the guest speak at length uninterrupted. He has some very nuanced insights to share.

Good talk

Super insightful into trend following, thank you for this interview

This is awesome content! I can’t believe it’s free here on KZbin (with ads ofc 😒 rip). High quality content that deserves my sub and like!

This was a great conversation, super interesting to learn about the business and food industry as a whole - thanks to Zach and Jeff. I wish Zach all the best with his product and business - wonderful work!

This channel is a real gem!

Hi Jeff, the origin of 'Does exactly what it says on the tin!' UK advert kzbin.info/www/bejne/m2jHqWWQbqxqg80

hello from TFPN squad

🎯 Key Takeaways for quick navigation: 00:33 🎓 Agustin Lebron is a former Jane Street prop trader and author of "The Laws of Trading," which focuses on decision-making in trading and life. 01:59 🌎 Agustin has Argentine roots and gives insights into Argentina's economy, mentioning frequent issues with inflation and devaluation. 03:53 🔄 Agustin identifies the link between engineering and trading as both fields require making decisions under uncertainty. 04:48 🃏 Transitioned from engineering to prop trading through online poker, describing trading as a mix of poker and engineering. 06:28 🧠 Discusses how engineering could be a natural starting point for analytical minds that later find applications in fields like trading. 08:04 💰 Distinguishes between two types of prop trading firms: those that require traders to put up cash, and others that provide salaries and bonuses. 09:28 📉 Talks about "toxic flow" in trading, which refers to trades that can harm market makers either due to size or information advantages. 12:45 📊 Debunks the idea that large market makers like Jane Street manipulate stock prices, explaining that they actually feel like the least powerful players in the market. 14:09 🤔 Challenges the notion that derivatives markets can unfairly influence underlying markets, suggesting it's often a misunderstanding of what "fair" price means. 17:43 🎯 Argues that market makers provide a valuable service of immediacy and that their profits are a natural outcome of that service. 19:21 ⏳ Highlights that one can be a non-economic player in the short term but an economic player in the long term, implying different time frames for different trading strategies. 19:49 📊 Trading firms are building models to analyze types of flow and assign player ratings to differentiate between smart and dumb flow. 20:14 ⏳ Trading strategies can be cyclical, going from effective to ineffective and back again over time. 21:10 ❓ One of the hardest questions to answer in trading is whether a model's edge is permanently gone or just temporarily diminished. 22:23 🤖💡 Balancing the capabilities of machine learning models with human intuition is crucial for optimal trading strategies. 24:16 📈 Technical consultants often morph into management consultants due to recurring issues around hiring and management in tech companies. 25:56 🎯 Small tech companies need to think strategically about hiring and can't solely focus on attracting "A-players" due to budget constraints. 27:21 🚨 A reckoning may be coming for tech talent, as people are financially comfortable but possibly not adding proportional value to their companies. 32:18 🔍 Identifying the true edge in a trade is the first question to ask when evaluating a trading idea. 34:35 🚪 Liquidity risk is often underestimated but essential for understanding the ease of entry and exit in trading positions. 37:15 ⚙️ Implementation details, like the costs and mechanics of executing a trade, are crucial and often contain hidden pitfalls. 39:20 🤔 Always question the source of high returns, especially if your principal is "protected." Be skeptical and understand the deal thoroughly. 40:17 🎭 Understanding the risks in trading schemes like Ponzi systems is crucial; however, having an "edge" in predicting when it will collapse is rare. 41:44 ⚙️ As technology evolves, so should your trading strategies. Automation is key, but always consider the cost-to-benefit ratio. 43:08 🌱 Markets are always evolving. The ability to adapt and see potential new trading horizons is important for long-term success. 44:30 📜 Regulatory changes can drastically affect trading strategies. Being adaptable is essential to survive in the trading world. 48:14 📊 Trend following may still be viable, but its edge has likely eroded over time. It's important to scrutinize the details of any trading strategy. 52:15 ⛔ If you're frequently hitting stop limits, you're likely trading too large. Stop orders should not be a frequent occurrence in a well-calibrated strategy. 55:05 🚫 Leverage ETFs are generally not suitable for retail investors due to their structure and risk of significant losses over time. 56:16 🤨 Regulatory inconsistencies exist, such as the availability of leveraged ETFs while restricting other potentially less risky instruments. 57:13 📚 Writing a book is an ordeal, indicating the complexity and depth of knowledge required in the trading field. Made with HARPA AI

Lol coach prime

It wasn’t just the host interrupting the guest, the guest interrupted the host too. These two just don’t communicate well period. The info is so good but it’s frustrating to listen to.

🤗 promo sm

I agree this is an Excellent interview(s) - Great content for smart investors. unfortunately not hightly appreciated by regular public but for smart investors this is GREAT information - THANK YOU FOR THE UPLOAD !

When was this recorded exactly?

Amazing and chill interview, so pleasant

Awesome stiff. Love the history and stories.

I have 1 share as of yesterday, cant wait to see how it feels and fits for more

Great interview as always Jeff!