The Evolution of Short-Term Trading | Open Interest 7

In this episode, Moritz Seibert is joined by Tony Kaiser, the CEO and founder of Kaiser Trading, a short-term systematic fund based in Melbourne, Australia. Tony speaks about his start in the late 1990s, leaving a bank prop trading role to set up his own shop, and then comments on how the short-term trading space has changed and evolved over the years. Today, the models they use are shorter-term than the ones they used to trade decades ago, and the entire business is much more tech dependent. Tony mentions that short-term trading is difficult and that the space has a higher barrier to entry, which is why there are relatively few short-term managers for investors to choose from, but that one really attractive feature is the low correlation of their returns not only to traditional asset classes, but also to their own sector, i.e., other short-term managers.
#toptraders #investing #trendfollowing
Episode Summary
02:16 - Introduction to Tony Kaiser
04:07 - An interesting journey
16:50 - A difficult space for alpha
20:55 - Why did Kaiser move into the short term space?
28:17 - How has trading frequency and systems evolved?
33:15 - Do Kaiser's original models still work today?
45:28 - A shock to the system
49:43 - Where does the low correlation come from?
57:00 - Thanks for listening
Full episode can be found here:
toptradsersunplugged.com/oi7
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[@holdReset]

I really enjoyed this guest and I felt like he had so much knowledge and experience to share that this one episode wasn’t enough to fit it in. If he’d oblige coming back again for another round that’d be awesome! Thank you!

[@cnaccio]

Love hearing from a real practitioner in short term trading!

[@trollunion54]

Got off to a slow start but really brought the heat starting about 20 minutes in.