“It's all about learning and staying on the learning curve, that's the best advice you can give to your children.” - Jean Jacques Duhot (Tweet)
Moritz Seibert and I continue our conversation with Jean Jacques Duhot and further discuss his contrarian and multi-part model, how his management company has stayed lean, and how the due diligence of investors and managers has changed the trading space for the better. Listen in to learn the unique properties of Jean Jacques new equities program, what he sees in the future of trend following, and who has influenced him most.
Thanks for listening and please welcome our guest Jean Jacques Duhot.
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In This Episode, You'll Learn:
How Jean Jacques knows when to change his position in his "all-in" approach
Why Arctic Blue's acquisition by H2O has been such a positive experience
How H2O is helping Arctic Blue stay lean and focused
What is unique about Arctic Blue's new equities program
“We look at volatility as being a very good measure of the risk and therefore, it is difficult to get confirmation of sustainable volatility regime versus the noise.” - Jean Jacques Duhot (Tweet)
What Jean Jacques defines as risk in his model
What excites and scares Jean Jacques about about the future
The most useful information Jean Jacques has learned about trend following
“On the daily basis, I think it's all about habits that create processes that help you to stick with a very disciplined approach.” - Jean Jacques Duhot (Tweet)
Why Jean Jacques believes the due diligence of managers by investors is the best it's been
What books Jean Jacques recommends for anybody in the trend following and investing space
Who influenced Jean Jacques in his journey into trend following
Connect with Arctic Blue Capital:
Visit the Website: Arctic Blue Capital
Call Arctic Blue Capital: +44 207 292 1608
E-Mail Arctic Blue Capital: [email protected]
Follow Jean Jacques Duhot on Linkedin
“The protection role and the ability to generate de-correlated returns by CT and trend following seems promising.” - Jean Jacques Duhot (Tweet)
Full Transcript
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Niels
…block trades that I think gives you an interesting new dimension versus the very traditional volume and open interest type of analysis.
Niels
Yeah, yeah, absolutely.
Mort
So, once you’ve opened a position and you’ve entered a position with a certain size, can that size change, or will it only change when you close the position, and you get a new signal?
JJ
No, no, that size can change. First, we should get stopped out, naturally, but also if you are reaching some partial profit taking based on the different scenarios of the expansion of the market, if you are speaking from the long side; or you have those several standard deviation types of movement in your favor where you think that’s the best way to maximize your profit and you exit everything, and you go to the sideline.
But also, you can have different intermediate steps based on the shape of the evolution where, basically, you can have a model that transforms itself from a short-term breakout model to a smaller short-term trend; i.e. after a breakout happens, and you reach a specific level where you think that the probability of mean reverting or observing further expansion, those probabilities are equal.
Then, that’s where you take your partial profit taking, and it’s in the second part where you are re-engineering your money management in order to consider that now you had enough P&L to be reinvested as a buffer to turn your model from a breakout to a tren...