TTU15: Model Decay & How Best to Handle It ft. Karsten Schroeder of Amplitude Capital 1of2

Published: July 21, 2014, 6:30 a.m.

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Through courage and vision, Karsten Schroeder co-founded Amplitude Capital as a pioneer in the CTA industry.

Why pioneers? Because they focused on short term trading.

In this episode of Top Traders Unplugged, Karsten and I discuss Amplitude Capital\\u2019s scientific approach to Amplitude Dynamic and Amplitude Klassik. These are the two short-term rule based trading programs that Karsten and his team run to invest billions of dollars on behalf on a small group of institutional investors.

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In This Episode, You\\u2019ll Learn:

  • The founding story of Amplitude Capital
  • About the motivation source for choosing short term trading
  • The scientific processes guiding Amplitude\\u2019s perception of the markets
  • How Amplitude manages their in-house and outsourced business processes
  • Where the point of optimal capital under management is for Amplitude Capital
  • A bird\\u2019s eye view of their historical track record and their reaction to the market shift in 2009
  • On the effects of quantitative easing and other government interventions in market health
  • Model decay and how to best deal with it
  • The design structure of Amplitude Capital\\u2019s Programs
  • Market dynamics and where the Amplitude programs trade
  • Differing philosophies: market specific models vs. models for all markets
  • Comparing mean reversion models (counter trend models) vs. trend following models

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IT\\u2019s TRUE ? \\u2013 most CIO\\u2019s read 50+ books each year \\u2013 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 \\u201cThe Many Flavors of Trend Following\\u201d here.

Learn more about the Trend Barometer here.

Send your questions to info@toptradersunplugged.com

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Follow Karsten Schroeder on Linkedin.

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