TL;DR
Niels Kaastrup-Larsen and Nick Baltas explore the challenges of staying systematic in today’s news-driven, hyper-volatile markets — where information overload, emotional trading, and regime shifts are making consistency harder than ever.
Key Takeaways
- Markets are hyper-reactive. Bursts of news and sentiment swings are overwhelming traditional macro models.
- Systematic investing’s edge is filtering noise. Rules-based strategies avoid emotional overreactions.
- Positioning shifts rapidly. Hedge funds are adding shorts without reducing longs, changing net exposures.
- Trend followers are reshuffling. April has seen major trend reversals across equities, currencies, bonds, and commodities.
- Patience is critical. Studies show trend following often struggles right before major equity downturns — but shines during prolonged crises.
Quotes
- “The challenge today is not just risk — it’s dealing with true uncertainty.”
- “In these markets, information flows so fast that even macro models can get whipsawed.”
- “Trend following is about executing without emotion — not predicting outcomes.”
Who’s It For?
Anyone feeling overwhelmed by today’s markets, especially rules-based investors seeking to stay disciplined while volatility and noise dominate.
Podcast: Top Traders Unplugged
Host: Niels Kaastrup-Larsen
Guest: Nick Baltas
Length: 1:08 hr
🎧 Listen to the full episode (Spotify)