Momentum Trading VS. Trend Following | Systematic Investor 279

In this episode, I'm joined by Katy Kaminski, who delves into the nuances distinguishing momentum trading from trend following, emphasizing the importance of comprehending the underlying philosophy of a trading strategy. Katy sheds light on the concept of 'pure trend' and offers insights on identifying convergent patterns within a trend following approach. We also reflect on the peculiarities of 2023, with Katy sharing her perspective on why we might be entering 'the final phase' and her expectations of a "bumpy" rather than smooth or abrupt economic transition, among other insightful topics.
#toptraders #investing #trendfollowing
Episode Summary
00:52 - A funny story from Katy
02:34 - An important shout-out
03:42 - A rare event in Denmark
06:55 - Industry performance update
08:10 - Thoughts on 2024 so far
09:42 - The difference between momentum and trend following
13:53 - Convergent vs. divergent strategies
24:08 - What does "pure trend" mean to Katy?
28:03 - What makes you a pure trend follower?
32:53 - Looking back at 2023
37:48 - An unusual year
43:22 - Discussing Katy's paper on fixed income
47:43 - How were trend models positioned in the 1960's?
51:11 - What does your position mean?
54:40 - Next big bull market in commodities?
56:10 - Thanks for listening
Full episode can be found here:
toptradsersunplugged.com/si279
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[@yms9892]

Insightful conversation!! Thank you..

[@TopTradersUnplugged]

Glad you enjoyed it!

[@stanleywang982]

Brilliant interview! Thanks Niels for another masterpiece. Just curious where to find the paper Katy mentioned on Risk Variation in Trend Following, the paper she claimed to be her all time favorite written in 2019. Seems not able to find anything online, thanks!

[@TopTradersUnplugged]

not sure...perhaps check out the AlphaSimplex website - the insights section