Top Traders Unplugged

"It’s important to understand and to have this risk management baked in the cake before these things happen." - Jerry Parker (Tweet) Jerry Parker takes us inside 2014 for his firm, and how his models reacted to the Swiss Franc move in January of 2015. He looks at the year and makes a case for trend following as an asset class, as well as highlights what we can learn from a year like 2014. Thanks for listening and please welcome our guest Jerry Parker. Subscribe on: In This Episode, You'll Learn: How the year ended up for Jerry’s firm. The date when his system started getting short Crude Oil. What they could have done better in 2014. How he dealt with the Swiss Franc move in January 2015 and how many ATR he made and lost on 2 different CHF positions. The minor changes they’ve made to increase diversification of their trading systems. "At the end of the day what trend following offers is the best type of risk control." - Jerry Parker (Tweet) What he wishes for 2015. Resources & Links Mentioned in this Episode: Listen to 2 hour-long episodes with Jerry on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with Chesapeake Capital: Visit the Website: www.chesapeakecapital.com Call Chesapeake Capital: +1 804 836 1617 E-Mail Chesapeake Capital: clientservices@chesapeakecapital.com Follow Jerry Parker on Linkedin & Twitter

"2014 may be viewed as the year of the machines, or the start of this phase of machines." - Dave Sanderson (Tweet) In this year-end-review, we take a look at how 2014 might be seen many years into the future. Is this when "trader-less" systematic trading caught on? We take you into the workings of a 1-year-old trading technology company, how they succeeded, and where they are going in the future. Thanks for listening and please welcome back Dave Sanderson. Subscribe on: In This Episode, You'll Learn: It was their first year of trading under the public eye. How consistent the statistics were the entire year. How the backtest matched up with live data in 2014. What led to their profits and where they lost money. Why it’s hard to draw conclusions that tie trades back to world events. How they made a lot of money in the first half of the year when other trend followers were having a difficult time. "I would rather be in the hot sector with a good story, than a standout performer in a sector that people are trying to allocate away from." - Dave Sanderson (Tweet) About their one-year birthday party. The improvements they made during the year. How 2015 will see a “refined” interest in trend following CTAs. Resources & Links Mentioned in this Episode: Listen to 2 hour-long episodes with Dave on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with KFL Capital Management: Visit the Website: www.kflcapital.com Call KFL Capital Management: +1 (416) 849-1925 x212 E-Mail KFL Capital Management: Info@KFLCapital.com Follow KFL Capital Management on Linkedin

"Volatility remained very low, so for models that are trying to be more selective and to provide alpha I would say it wasn’t a good year." - Nigol Koulajian (Tweet) In this year-end-review, we discuss the year for CTAs and short term traders, as well as the recent collapse of the Euro/Swiss Franc peg and how that affected the models of Quest Partners. Nigol discusses his goals and thoughts for 2015 and reflects on a 2014 that saw his firm start two new strategies and take in new investment. Please welcome back our guest Nigol Koulajian. Subscribe on: In This Episode, You'll Learn: How Quest Partners did in 2014. Why fixed income was the highest contributor to his gains during the year. What models did well in 2014. What the Euro/Swiss Franc collapse can teach us about risk management. How do we prepare for the unthinkable? The details of how his models reacted to the Swiss Franc surge. "The danger of central banks doing what they’re doing, is that the potential for the moves such as yesterday to continue to happen is higher and higher." - Nigol Koulajian (Tweet) What the highlights of 2014 were for Nigol. About the two hedge strategies that they started in 2014. How investors should insure they don’t repeat 2011 and 2012. How the “Black Box” of CTAs is not as mysterious as it used to be. What focus he is taking in 2015. Resources & Links Mentioned in this Episode: Listen to 2 hour-long conversations with Nigol on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with Quest Financial Partners: Visit the Website: www.QuestPartnersLLC.com Call Quest Partners LLC: +1 (212) 838-7222 E-Mail Quest Partners LLC: info@questpartnersllc.com Follow Nigol Koulajian on Linkedin

"If I was proud of something, it’s that we lost very little during the bad periods." - Scot Billington (Tweet) In this Year End Review, we discuss the major events and unexpected market trends in 2014 as well as the major Swiss Franc move at the start of 2015. Scot Billington discusses his firm's performance what they learned from their losses and gains, and how they evolved their models. He also talks about why they were able to keep losses low in 2014. Thanks for listening and please welcome our guest Scot Billington. Subscribe on: In This Episode, You'll Learn: An overview of what happened in 2014 and where they made money. Which factors contributed to profits in 2014 and which factors were the laggards. Dissecting the market effect of sliding oil prices in 2nd half of 2014 and the "un-pegging" of the Swiss Franc to the Euro. Evolving perspectives on risk management in response to events of 2014. "Correlations are something people use a lot and often improperly. They can be encouraged to cause someone to take more risk." - Scot Billington (Tweet) Deconstructing the Optimal Program and how to mitigate risk in higher leverage environments. Actions taken to keep a typical program or an Optimal Program from going to zero. Changes in client perspectives of a CTA strategy no one predicted would do so well a year ago. What Scot Billington would wish for in 2015. Resources & Links Mentioned in this Episode: Listen to 2 hour-long episodes of Scot on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with Covenant Capital Management: Visit the Website: www.CovenantCap.com Call Covenant Capital: +1 (615) 678-6742 E-Mail Covenant Capital: info@covenantcap.com Follow Scot Billington on Twitter.

"Last year was quite unprecedented from the standpoint of volatility in different markets." - Peter Kambolin (Tweet) Peter Kambolin comes from the short term CTA space, and thus has a different perspective than some of our previous guests for our Year in Review theme this month. He discusses how the events in Crimea and Russia shaped markets, how divergence played a role, and how his firm made small changes to models and even added a new product line in 2014. Thanks for listening and please welcome our guest Peter Kambolin. Subscribe on: In This Episode, You'll Learn: How the year went for Peter and his two different strategies that his firm trades. Why it was a challenging year for mean-reversion type strategies. What markets did well in his portfolio. What he learned from 2014 and what he would do differently. The minor adjustment they made to the model in October. How they adjusted or reacted to world events in 2014. "Definitely the events in the Ukraine and Russia impacted our trading." - Peter Kambolin (Tweet) Why they don’t trade certain markets because most trades are not made by humans. What would divergence do for his trading models. How they improved their backtesting in 2014. How to avoid an inflow of capital that will only leave a year or two later. Resources & Links Mentioned in this Episode: Listen to 2 hour-long episodes with Peter on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with Systematic Alpha Management: Visit the Website: www.systematicalpha.com Call Systematic Alpha Management: +1 646 825 8075 E-Mail Systematic Alpha: info@systematicalpha.com Follow Peter Kambolin on LinkedIn

"I do believe that many institutional investors out there have started looking at hedge funds with a more positive view on the space as a whole." - Anders Lindell (Tweet) How do clients understand a trading strategy so that they stick by the firm in hard times? How do investors make sense of when things go well for the CTA industry. We dive into these questions and more on this next episode, a year-in-review from Anders Lindell of IPM. Thanks for listening and please welcome Anders Lindell. Subscribe on: In This Episode, You'll Learn: Why 2014 was a model-proving year for IPM. How relative bond trading worked so well for his firm. How the world events of 2014 affect how much risk people take on in general. Why his models got the Russian Ruble wrong. Anders’ new role within IPM that was a highlight for him during last year. How conversations with investors changed over the year. "We have the advantage of being able to frame our trading based on relatively understandable concepts." - Anders Lindell (Tweet) How Anders thinks about divergence in context with the market’s past history. How he makes sure that clients know what they are buying into. Why he wants a normalization from the central banks. Resources & Links Mentioned in this Episode: Listen to 2 hour-long conversations with Anders on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with IPM: Visit the Website: www.IPM.se Call IPM: +46 8 20 19 29 E-Mail IPM: info@ipm.se Follow Anders Lindell on Linkedin

"It has been more important for us in 2014 to not lose money in certain markets than actually trying to perfectly capture new opportunities." - Bastian Bolesta (Tweet) Bastian Bolesta reviews 2014 and details the ups and downs of the year for his firm and the managed futures industry as a whole. In this episode, he discusses the start to the year that he wants to forget, the return of seemingly normal volatility, and the profitable 4th quarter. Thanks for listening and please welcome Bastian Bolesta. Subscribe on: In This Episode, You'll Learn: How the first half of 2014 was a continuation of 2013 for Deep Field Capital. How the "fellows" in their trading program evolved during the year. What markets contributed to their growth. What markets they lost in during 2014. The automated system they use to choose what markets they trade. How the markets started to behave in a more “normal” way in the second part of 2014. What his highlight was for the year. "It’s not just a wonder box where every single month you will now make money as you did in 2014. And maybe as a manager you should not accept certain money." - Bastian Bolesta (Tweet) Why to be careful of accepting assets that are chasing past performance. Resources & Links Mentioned in this Episode: For more of Bastian, listen to 2 hour-long episodes with him here and here. This episode was sponsored by Swiss Financial Services: Connect with Deep Field Capital: Visit the Website: www.DeepFieldCapital.com Call Deep Field Capital: +41 41 511 5588 E-Mail Deep Field Capital: info@deepfieldcapital.com

"The CTA community, as an asset class, is one of those that you might not want to bet on, but it would be wrong to bet against." - Chris Cruden (Tweet) Our next Year-in-Review conversation comes from a manager who considers 2014 to have been a disappointing year for his firm. As a trend follower in the currency markets, Chris has unique insights into what shaped 2014 and how the next couple of years look for his industry. He also shares the importance of having discipline and sticking to your systematic models, which builds investor confidence. Thanks for listening and please welcome our guest Chris Cruden. Subscribe on: In This Episode, You'll Learn: Why the year was a disappointment for Insch Capital. As a currency trader, how he differs from firms that trade different markets. How the carry trade has all but disappeared. How he reacted to world events in his business. Why he is very proud that Insch stayed the course over 2014. "Trading the way we do takes a great deal of discipline." - Chris Cruden (Tweet) What he thinks of the emerging currencies. How his investors felt about 2014. Why he is hopeful for more divergence in the years to come. How Chris will try and avoid a repeat of the 2008-2009 inflow of capital to the industry. Resources & Links Mentioned in this Episode: Listen to 2 hour-long conversations with Chris Cruden on Top Traders Unplugged here and here. This episode was sponsored by Swiss Financial Services: Connect with Insch Capital Management: Visit the Website: www.InschInvest.com Call Insch Capital Management: +41 (0) 91 921 0168 E-Mail Insch Capital Management: info@inschinvest.com Follow Chris Cruden on Linkedin

"It was a year, I can tell you in all honesty, that tested your resolve." - Tim Pickering (Tweet) Our next year-in-review is from a recent guest who discusses the roller coaster feel to 2014, and why it was a good year for the CTA industry. He talks about what his firm learned from 2014 and why he is very excited about this year. Thanks for listening and please welcome our guest Tim Pickering. Subscribe on: In This Episode, You'll Learn: The ups and downs of 2014 from Tim’s perspective. What markets contributed most for his firm during the year. What markets he wished he did better in for 2014 and what he learned from those market shifts. The kinds of strategies they trade and what stood out as working well. "This is a non-correlated absolute returns strategy. Don’t just hire a CTA because you think there’s going to be an equity sell-off or crisis, because that is not the only driver to our returns." - Tim Pickering (Tweet) What big worlds events are visualized in the markets and how they affect the strategies. How Auspice grew in 2014 and what were the drivers of that growth. What changed in their research process in 2014. Why Tim is very excited about the market environment in 2015. Why he wants to make sure investors sign up with his firm for the right reasons, not just chasing returns. What caused 2014 to be the biggest client acquisition year ever for Auspice Capital. What Auspice has planned for 2015. Resources & Links Mentioned in this Episode: Listen to 2 other hour-long episodes with Tim Pickering here and here. This episode was sponsored by Swiss Financial Services: Connect with Auspice Capital Advisors: Visit the Website: www.AuspiceCapital.com Call Auspice Capital: +1 (888) 792-9291 E-Mail Auspice Capital: Click here for the web form Follow Tim Pickering on Linkedin

"I think that diversification is king, and timing things is very difficult." - Karsten Schroeder (Tweet) In this 2014 year-in-review, Karsten Shroeder looks at the CTA industry and give some advice on how to look at 2014 with a rational and objective eye. He also has insights into how 2015 will be for the CTA industry and how to educate more clients to the advantages of managed futures. Please welcome our guest Karsten Schroeder. Subscribe on: In This Episode, You'll Learn: How the year evolved for Amplitude and it’s strategies. How the CTA industry did in 2014 in Karsten’s opinion. What models did well last year. How hard it is to shape models and make guesses based on world events that affect the markets. What Karsten learned from 2014. "We are trying to educate our potential clients and explain to them the benefits of CTA strategies." - Karsten Schroeder (Tweet) How they have increased their research team. Why his firm welcomes divergence in the markets. Why educating clients is very important. What diversification can do for clients in their portfolios. Why not to use 2014 as a reference point and say that this markets new returns for CTAs. What Karsten wishes for 2015. Resources & Links Mentioned in this Episode: You can listen to 2 hour-long podcasts with Karsten here and here. This episode was sponsored by Swiss Financial Services: Connect with Amplitude Capital: Visit the Website: www.ampcap.com Call Amplitude Capital: +41 41 747 15 00 E-Mail Amplitude Capital: z@ampcap.com Follow Karsten Schroeder on Linkedin

"The best sectors for us for the year were certainly energies and equities." - Jason Gerlach (Tweet) For January 2015, we will be revisiting with previous guests on the show to find out how their businesses grew and changed in 2014, and what the year was like overall for their industries. In our first Year-In-Review episode, Jason Gerlach, the first-ever guest of Top Traders Unplugged, looks at 2014 from a long-term trend following perspective. Subscribe on: In This Episode, You'll Learn: Why 2014 was a great year for Sunrise Capital. What markets were responsible for much of their performance in 2014. The most challenging markets for Sunrise Capital last year. About their longer-term trend following strategies. How world events shaped market changes in 2014. About the oil collapse of 2014. How volatility returned to markets last year. "We can thrive in a growth economy; we can also thrive in an environment where markets are collapsing, and many points in between." - Jason Gerlach (Tweet) How long-term trend following is getting more attention than before. How to avoid 2015 becoming like 2009 for this industry. If & When to turn down clients. How divergence is the one word that may summarize the next few years. Resources & Links Mentioned in this Episode: Listen to 2 hour-long episodes with Jason and Niels here and here. This episode was sponsored by Swiss Financial Services: Connect with Sunrise: Visit the Website: www.sunrisecapital.com Call Jason Gerlach - +1 (858) 259 8911 E-Mail Jason Directly: JGerlach@sunrisecapital.com Follow Sunrise on LinkedIn or follow Sunrise on Twitter

"Investing is a challenge. But the bigger challenge is running a business and managing people and relationships." - Tim Pickering (Tweet) In the second part of our talk with Tim Pickering, we dive into the details of his firm and the challenges that he has to overcome as a business owner and entrepreneur. Tim has some valuable life lessons for managers who are just getting started. He also dives into the different ways investors should carry out their due diligence and why he wanted to become a manager in the first place. Thanks for listening to Part 2 of our conversation with Tim Pickering. Subscribe on: In This Episode, You'll Learn: The details of Auspice’s programs and what makes them different from other managers. "The goal of all the system development that we do is to develop strategies that adapt to the environment." - Tim Pickering (Tweet) What discretionary traders are good at and how Tim captures lessons from them in a systematic model. How he implements the system in practice. How Tim measures risk. "What is that risk you have to take to make a return?" - Tim Pickering (Tweet) How he copes with being in a drawdown. What he has learned from the drawdowns that Auspice has been through. "You have to have a lot of fortitude and patience in a strategy like this." - Tim Pickering (Tweet) What keeps him up at night. What questions he brainstorms with his research team currently. "Basic trend following or trend capture, wrapped in rigorous risk management capital allocation works, point blank." - Tim Pickering (Tweet) How to detect if a model is deteriorating. How meaningful are back tests? About the CTA value-added index that Auspice developed. The difference in investing through a fund, an EFT, or other options. What investors should be asking when they go through their due diligence with Auspice Capital. "You always have these hopes and dreams when you go through a due diligence process that you get to talk about certain things, and often times you don’t." - Tim Pickering (Tweet) Why he became an entrepreneur. The books Tim would recommend for traders and managers. What skill he would pass on to his children if he could choose only one. Resources & Links Mentioned in this Episode: Learn about the Barclay CTA Index that Tim mentions. Tim recommends you read: Books by Jack Schwager. Simon Sinek's Start with Why. How to Win Friends and Influence People by Dale Carnegie. The Prize by Daniel Yergin. This episode was sponsored by Swiss Financial Services: Connect with Auspice Capital Advisors: Visit the Website: www.AuspiceCapital.com Call Auspice Capital: +1 (888) 792-9291 E-Mail Auspice Capital: Click here for the web form Follow Tim Pickering on Linkedin "The ability to not fade and have fortitude is so important in life." - Tim Pickering (Tweet)

"Investment returns don’t come in straight lines, they don’t come in nice weekly, monthly or yearly blocks." - Tim Pickering (Tweet) What is the difference between simply following a trend and capturing it? Why is growth not consistent and gradual and why do we want it to be? Learn answers to these questions and more in this week's episodes. Niels chats with the founder of a seasoned trend-follower in Canada, who knew he wanted to go into the financial markets since his university days. His story of working for large investment banks to starting his own firm will inspire current managers and hopeful managers alike. Thanks for listening and please welcome our next guest Tim Pickering. Subscribe on: In This Episode, You'll Learn: Why Tim tries to get away from being labelled as one thing or another. About growing up on a farm in Canada. How he knew he wanted to be a trader. How his experience in the energy markets affected the way he ran his business when he started it. "I’m very conservative with my own capital and that has really filtered into the investment approach that I’ve taken." - Tim Pickering (Tweet) Why discipline is so important for the kind of manager that Tim is. Why he has stuck with the theme of trading commodities. "We don’t force commodity exposure - but we are absolutely happy to focus on it." - Tim Pickering (Tweet) What Tim does when he is not running Auspice. "We have a small music studio in our office." - Tim Pickering (Tweet) The difference between following a trend and capturing a trend. How growth is not slow and steady. An overview of the products that Auspice runs. Why they launched a beta product after launching their flagship product. The history of how Tim grew Auspice with his business partner. How he chose to structure his business. How a small team can deliver the same value as a larger manager. "By virtue of being non-discretionary, I don’t need a massive infrastructure." - Tim Pickering (Tweet) What people should notice when looking at the track record of Auspice. What the Diversified Program does. How many markets he actually trades. Why position resizing is important. "What is hard to do is when to adjust or take those risks off." - Tim Pickering (Tweet) Resources & Links Mentioned in this Episode: Learn more about Calgary, Canada. Both Tim and his business partner from Auspice previously worked at TD Securities. This episode was sponsored by Swiss Financial Services: Connect with Auspice Capital Advisors: Visit the Website: www.AuspiceCapital.com Call Auspice Capital: +1 (888) 792-9291 E-Mail Auspice Capital: Click here for the web form Follow Tim Pickering on Linkedin "This mindset that you need 100 PhDs to compete against another firm is just an excuse." - Tim Pickering (Tweet)

"The dirty and hard work is how do you survive those consolidations and the difficult periods." - Rob Hartman (Tweet) Rob Hartman knows that showing up is half the battle when it comes to work in any industry. But his viewpoint as a solo fund manager give us deep insight into the inner-workings of a firm and how it deals with drawdowns, track record, and investors' questions. In Part 2 of our conversation with Rob, we dive into his models and programs and how each of them works. We also learn about Rob's background that helps round out this picture of a successful manager. Thanks for listening and welcome to the second part of our talk with Rob Hartman. Subscribe on: In This Episode, You'll Learn: Why Hannah Montana has some life lessons to teach. Rob’s track record and how to read it. What happened when he changed his strategy. "A lot of this is just staying organized and being willing to do whatever it takes to make money for the client in interesting ways." - Rob Hartman (Tweet) The details of the programs he runs. How Vanguard, his flagship product, works. How he manages his momentum trades, or trend following trades. Why his thoughts on position sizing have evolved over time. How he conducts his research and why he doesn't do any discretionary trading on his models. "I’m constantly generating inventory of other strategies that run on other markets." - Rob Hartman (Tweet) The risk that he focuses on as a smaller manager and how he manages that risk. How he deals with questions about drawdowns from investors. How Rob copes emotionally when he experiences a drawdown. "My program isn’t really dependent on not missing the big move." - Rob Hartman (Tweet) What his research process is without a research team. "Success will be defined by the time and diligence you put into ongoing research." - Rob Hartman (Tweet) What is the optimal number of rules for Rob’s models to have. What questions investors are missing in their due diligence. Books he would recommend for would-be managers. The advice he gives to his kids and the lessons he wants to pass on. Resources & Links Mentioned in this Episode: Rob recommends these books: Van Tharp - Trade Your Way To Financial Freedom Rishi Narang - Inside the Black Box: A Simple Guide to Quantitative and High Frequency Trading Rob also mentions getting inspiration from Kathryn Kaminski, who was our guest on Episode 41 and Episode 42. If you want to see Rob in a past life, you can watch his windsurfing "Winning Formula" video on YouTube. This episode was sponsored by Swiss Financial Services: Connect with Pacific Capital Advisors: Visit the Website: www.PacificCapitalAdvisors.com Call Pacific Capital Advisors: +1 650-988-9721 E-Mail Pacific Capital Advisors via this form. Follow Rob Hartman on Linkedin "You’re going to be in the 95th percentile if you just wake up, get up, and show up." - Robt Hartman (Tweet)

"Staying organized is not so hard - the really tough stuff is figuring out how to make money for people." - Rob Hartman (Tweet) In starting any business, you run into unexpected roadblocks and challenges, and you learn something from each mistake. Our next guest is the founder of a trading firm who has grown his business twice and learned how to overcome the barriers in his way. We can learn a lot from someone who is ready for the unexpected whether it is good or bad. Thanks for listening and welcome our guest Rob Hartman. Subscribe on: In This Episode, You'll Learn: About his childhood in Upstate New York and Pennsylvania. Rob’s interest in music and sports. "I was an OK student - but the things I was interested in I was fanatical about." - Rob Hartman (Tweet) How his early Rock and Roll career faired and how he went into the financial industry. How he got hired at IBM. His years at IBM and the lessons it taught him. How his fascination for trading started after he began a consulting business. "It was the dot-com boom - this place was just going crazy here in the Bay Area." - Rob Hartman (Tweet) The tipping point: when he went full-in to the trading business. How he learned about different strategies and tested them. When he came upon trend following and what made him stick with it. "The trend following approach seemed to be reasonably profitable and I could just rationalize it pretty well on a go-forward basis." - Rob Hartman (Tweet) What kind of trend following he started with. How a drawdown taught him he needed to differentiate himself from other managers. The lessons that his first expansion stage taught him. The big event that happened after 2010 that changed everything. "MF Global happens, and essentially overnight I’m out of business." - Rob Hartman (Tweet) About MF Global and the meltdown of that firm. An overview of the programs that his firm runs. How he manages investor expectations with a small team. "What’s the single point of failure? Well clearly it’s me." - Rob Hartman (Tweet) How he outsources operational roles in order to cut costs and remain a one-man shop. Resources & Links Mentioned in this Episode: Learn about IBM. Find out more about MF Global and events surrounding that company's bankruptcy. This episode was sponsored by Swiss Financial Services: Connect with Pacific Capital Advisors: Visit the Website: www.PacificCapitalAdvisors.com Call Pacific Capital Advisors: +1 650-988-9721 E-Mail Pacific Capital Advisors via this form. Follow Rob Hartman on Linkedin "I think of systematic trading as a wonderful way to do as much worrying as you can as soon as possible." - Rob Hartman (Tweet)