Deep Dive into Multi Model, ETF Trend Following Strategies with Joris Bastien
In this episode, we sat down with the distinguished Joris Bastien, a maestro in the realm of quantitative trading. Joris' journey into the financial world was anything but conventional. With a background rooted in mathematics, he ventured into the finance sector, initially embracing roles in IT development and project management within the bustling equity trading rooms of Paris.
Bastien's pivot from the tech side to the business facet of finance marked a significant turning point in his career. His transition to a hedge fund analyst allowed him to delve into the intricate world of quantitative hedge funds, laying the foundation for his later achievements in designing advanced trading systems.
The Evolution of a Trading System Architect
Bastien's approach to trading system design is a testament to his innovative spirit. Rejecting the conventional route of factor identification, he chose to construct his trading systems based on the strategies of the managers he encountered during his analyst days. This hands-on experience with a variety of trading strategies fuelled his passion for creating a unique index that closely mirrored the performance of the managers he reviewed, offering valuable insights into their position adjustments over time.
Despite his success, Bastien's relentless pursuit of improvement led him to explore opportunities beyond the confines of his then-current role. His move into currency management and later into comprehensive CTA strategies highlighted his adaptability and drive to explore new territories in trading.
A Blend of Traditional and Novel Approaches
Bastien's methodology is a harmonious blend of traditional trading principles and innovative quantitative techniques. His foray into equities, for instance, was not hindered by his lack of direct experience in the field. Leveraging his profound understanding of volatility and market dynamics, he adeptly applied his trend-following systems to equities, demonstrating their universal applicability and his adeptness at risk management.
One of the most intriguing aspects of Bastien's strategy is his focus on system diversification rather than asset diversification. He emphasizes the importance of controlling diversification through the trading systems themselves, allowing for a more stable and predictable risk profile. This approach, rooted in his deep mathematical understanding, sets him apart from many of his contemporaries.
The Future of Trading: Insights and Predictions
Bastien's insights into the future of trading, particularly in the realm of cryptocurrencies, offer a fascinating glimpse into the potential shifts in market dynamics. His belief in the growing significance of Bitcoin and other cryptocurrencies as viable alternatives to traditional currencies underscores the evolving nature of global finance.
Moreover, Bastien's perspective on the impact of regulatory changes and market conditions on trading strategies underscores the necessity for adaptability and innovation in the ever-changing financial landscape.
Conclusions
Joris’ journey from a math enthusiast to a seasoned quantitative trading strategist is a compelling narrative of innovation, adaptation, and relentless pursuit of excellence. His unique approach to trading system design, coupled with his insights into the future of finance, make his story not only inspiring but also a valuable resource for anyone looking to navigate the complex world of financial markets.
As the financial world continues to evolve, Bastien's strategies and insights will undoubtedly remain a beacon for both aspiring and established traders, offering a roadmap to success in the unpredictable waters of global finance. Subscribe to his newsletter on linked in to keep abreast of his thinking!
Get in touch with Joris:
x: https://twitter.com/quantaraxia
li: https://www.linkedin.com/in/jorisbastien/
w: https://www.quantaraxia.com/