15 Model Decay and How Best to Handle It with Karsten Schroeder of Amplitude Capital – 1of2
Summary: "When you build short term trading models, it's all green-field research." - Karsten Schroeder (Tweet)<br> Through courage and vision, Karsten Schroeder co-founded Amplitude Capital as a pioneer in the CTA industry.<br> <br> Why pioneers? Because they focused on short term trading.<br> <br> In this episode of Top Traders Unplugged, Karsten and Niels discuss Amplitude Capital's 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.<br> <br> Thank you very much for listening to this episode with the Executive Chairman of Amplitude Capital, Karsten Schroeder.<br> <br> <br> In This Episode, You'll Learn:<br> <br> The founding story of Amplitude Capital<br> About the motivation source for choosing short term trading<br> On the essence of a great company: The Team<br> <br> "There is a negative notion to the word 'change', that's why we prefer the word upgrade. Upgrade means you do, more or less, the same that you were doing before but in a better way." - Karsten Schroeder (Tweet)<br> <br> Describing Amplitude Capitals' Trading Programs:<br> <br> <br> Amplitude Dynamic - A two day holding period, short term CTA program that trades all asset classes (currently trading app. $1 billion.)<br> Amplitude Klassik - 8 day holding period program, with less reversion models than Dynamic (currently trading app. $600 million.)<br> <br> <br> The scientific processes guiding Amplitude's perception of the markets<br> How Amplitude manages their in-house and outsourced business processes<br> <br> "As important for an investor to choose the right fund, as important it is for the fund to choose the right investors." - Karsten Schroeder (Tweet)<br> <br> Where the point of optimal capital under management is for Amplitude Capital<br> A bird's eye view of their historical track record and their reaction to the market shift in 2009<br> On the effects of quantitative easing and other government interventions in market health<br> <br> "When you evaluate businesses today, I think it's so much more down to the team than to the original idea." - Karsten Schroeder (Tweet)<br> <br> Model decay and how to best deal with it<br> The design structure of Amplitude Capital's Programs<br> Market dynamics and where the Amplitude programs trade<br> <br> "Having markets that face interventions is not healthy." - Karsten Schroeder (Tweet)<br> <br> Differing philosophies: market specific models vs. models for all markets<br> Comparing mean reversion models (counter trend models) vs. trend following models<br> Plus much, much more...<br> <br> Resources & Links Mentioned in this Episode:<br> <br> Karsten's also participated in the Battle of the Quants<br> <br> <br> Sponsored by Swiss Financial Services and Saxo Bank:<br> <br> Connect with Amplitude Capital:<br> Visit the Website: www.ampcap.com<br> <br> Call Amplitude Capital: ++41-41-747 15 00<br> <br> E-Mail Amplitude Capital: z@ampcap.com<br> <br> Follow Karsten Schroeder on Linkedin<br> "The first couple of years were really, really tough because I remember I was doing so many meetings pitching this to all types of investors around the globe." - Karsten Schroeder (Tweet)
