OI11: Avoiding the Herd: A Different Path to Alpha ft. Jerome Callut
58:02 Share

In today’s episode Moritz Seibert is joined by Jerome Callut, one of the founders of DCM Systematic, a quantitative hedge fund based in Geneva, Switzerland. DCM Systematic aims to produce returns that are uncorrelated to trend following CTAs by pursuing a different path to alpha. In fact, the team around Jerome is very much focused on avoiding getting into trend following trades. Instead, they emphasize strategies which anticipate the flows of other traders and use several behavior-based models to distinguish themselves from the SG CTA index and other industry benchmarks. Jerome and Moritz speak discuss generic trade examples and Jerome explains why pro-active and re-active risk management is very important for them.

EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool)

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.

Follow Moritz on Linkedin.)

Follow Jerome on LinkedIn.)

**Episode TimeStamps: **

02:21 - Introduction to Jerome Callut

03:52 - Why they use non-trend following models

08:42 - What would happen if they added a trend following component to their model?

09:57 - The 3 categories of their trading system

11:11 - Category 1, Behavioural: Anticipating the flows and trades of other traders

15:35 - An example of how they handle flow

18:35 - Did Callut anticipate the unwind of the Japanese Yen carry trade?

21:51 - Exploiting the skid marks in the markets

23:53 - Category 2: Relative value and spread trading

29:37 - Collecting the roll down yield

31:12 - Is Callut also engaging in a short VIX positioning?

36:59 - Proactive and reactive management

38:33 - What could happen after Volmageddon?

40:42 - How they implement reactive management

41:37 - Category 3: Macro trades

46:37 - What role does automation play at DCM Systematic?

48:36 - How they implement AI and machine learning

53:38 - A work in progress

54:46 - Working with a moving target

Copyright © 2024 – CMC AG – All Rights Reserved

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)

Privacy Policy)

Disclaimer)