TTU42: Why You Need this Trading Strategy TODAY ft. Kathryn Kaminski of AlphaSimplex – 2of2

Welcome to Part 2 of our conversation with researcher and co-author of one of the definitive books on trend following. In this conversation, we dive into the the models that she used in writing the book, as well as her thoughts regarding risk management, what you should be asking a manager during due diligence, and what the future holds for the managed futures industry.

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50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE

In This Episode, You’ll Learn:

• What Kathryn looks at when evaluating the track records of managers.
• Her thoughts on the recent performance of trend followers.
• About price range compression.
• If she has a favorite statistic to look at when analyzing a manager.
• How she and her co-author came up with the trading strategy that they use in their book.
• Why the exit from a position is just as important as the entrance.
• What trend leakage is.
• Her views on how inflation and other environmental changes affects trend following strategies.
• About diversification.
• About risk management; how Kathryn defines risk and what is important to look at in risk management.
• Kathryn explains the topics of hidden and unhidden risk.
• What kind of drawdowns should be expected from a trend following model.
• A discussion of the drawdowns that trend followers have experience in the last few years.
• Seeing drawdowns as a buying opportunity.
• How to detect if a manager’s models and system has stopped working.
• The biggest challenge for the CTA industry right now.
• What she would ask of David Harding.
• What questions investors should be asking of managers when doing their due diligence.
• What personalities traits a good trend following manager should have.
• Her thoughts on regulation, especially for smaller managers.
• What her plans are for the future and how she sees the managed futures industry going forward.

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Resources & Links Mentioned in this Episode:

• Kathryn’s book is: Trend Following with Managed Futures.
• Is this Time Different? Trend Following and Financial Crisis.
• Following the Trend
• Outlier
• David and Goliath
• Lean In
• Kathryn’s TED talk on Convergence and Divergence.

Follow Niels on Twitter, LinkedIn, YouTube or via the TTU website.

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 here.

And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here.

Learn more about the Trend Barometer here.

Send your questions to [email protected]

And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast.

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Copyright © 2025 – CMC AG – All Rights Reserved

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PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:

1. eBooks that cover key topics that you need to know about

In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here

2. Daily Trend Barometer and Market Score

One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here

3. Other Resources that can help you

And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here

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