“Are you invested in something that, whatever is going to happen, you can say, ‘okay, I’m invested in that for a good reason and I know that’s why i have it’?” - Harold de Boer (Tweet)
Katy Kaminski and I continue our conversation with Harold de Boer, and discuss his philosophy behind pure trend and divergent trading, as well as why Harold believes Transtrend is unique in the managed future space. In this episode, we talk about the benefits of synthetic trading, Harold's advice to a new rising star, and what he is looking forward to going forward.
Thanks for listening and please welcome our guest Harold de Boer.
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In This Episode, You'll Learn:
How Harold views pure trend and divergent trading within Transtrend
“Pure trend, somehow the meaning of the term has changed.” - Harold de Boer (Tweet)
What pure trend means today in comparison to what it used to mean
What it means to Harold to serve his clients best through his trading
How trading synthetic markets helps to profit from trends
“I think the ultimate investor should not invest everything in one investment program. You should have different investment styles and you can combine those things.” - Harold de Boer (Tweet)
What Harold thinks is unique about Transtrend’s trading model
The research projects that inspire Harold right now
Why Harold believes it's unrealistic to expect returns without volatility
“This willingness to be ready for the short trend in stocks; synthetics helped in making that possible.” - Harold de Boer (Tweet)
The differences between the passive and active investor
What excites Harold about 2018
The things that scare Harold and keep him up at night
Why risk management should be done by anticipation, not by response
Connect with Transtrend:
Visit the Website: https://www.transtrend.com/
Call Transtrend: +31 10 453 6510
E-Mail Transtrend: [email protected]
Follow Harold de Boer on Linkedin
“As long as the stock markets keep on rising like they did last year, then people will think we don’t need CTA’s.” - Harold de Boer (Tweet)
Full Transcript
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Harold
…negative alpha and that’s what we strive to do.
Katy
So, Harold, you mentioned a little bit about risk premia, and I thought we’d turn towards trend. I think that this is something… I know, in the past, I’ve heard you talk a lot about how Transtrend is focused on pure trend, and on divergent trading. So, I thought it would be nice if you could give us a glimpse into that philosophy and how you explain that and how that runs through your investment process and the people on your investment team.
Harold
Pure trend - somehow the meaning of the term has changed. I would say we are a pure trend follower because everything that we do is aimed at capturing trends and doing that as maximally as possible. It doesn’t matter where they are. We look at it from a trend perspective, not from a market perspective.
We want to be in the oil trend, and this is there and there. We want to be in the trend that is caused by people buying more things on the internet instead of in old-fashioned shops, OK, you can pick it up there, and you can pick it up there. That’s the kinds of trends we are in. Pure trend, nowadays, has come down to: “We do it with a simple trading rule that is available to everyone. Well, we [at Transtrend] have never used one of the available trading rules… And then we only apply this rule on the most mainstream markets.” That is, what’s nowadays called ‘pure trend’.
So, in that sense,