The Hidden Cracks in Systematic Strategies | Systematic Investor | Ep. 392

Description

Markets have shifted quickly in 2026, forcing systematic investors to reassess what is signal and what is noise. In this episode, Niels and Nick explore recent drawdowns, volatility in commodities, and how geopolitical shocks ripple through quantitative strategies. They unpack the role of QIS, the evolving structure of energy markets, and why some trends are holding while others fade. The conversation also challenges common assumptions about diversification, model design, and the growing influence of options markets. Rather than reacting to headlines, this episode focuses on how systematic investors interpret changing conditions and adapt without abandoning discipline. #toptraders #investing #trendfollowing Episode TimeStamps: 00:01 - Introduction to systematic investing and current market backdrop 01:03 - 2026 sentiment shifts from optimism to uncertainty 03:04 - Commodity curve trades and recent QIS drawdowns 08:34 - Why gas and oil behave very differently in markets 11:17 - Media narratives vs actual CTA performance 14:03 - Rising stagflation concerns and interest rate volatility 18:08 - Trend following performance and positioning update 27:06 - Do options markets impact trend following models 38:28 - Core vs broad market universes in trend strategies 48:46 - Can AI reshape systematic research workflows 55:23 - Quant equity resurgence and lessons from past drawdowns 01:02:19 - Macro uncertainty and what drives trends going forward Full episode can be found here: https://toptradsersunplugged.com/si392 Subscribe to our podcast: iTunes: https://itunes.apple.com/us/podcast/top-traders-unplugged-niels-kaastrup-larsen-engaging/id888420325?mt=2 Spotify: https://open.spotify.com/show/2OnOvLbIV3AttbFLxuoaBW Follow us on social media: TWITTER: https://twitter.com/TopTradersLive (@TopTradersLive) FACEBOOK: https://www.facebook.com/toptradersunplugged INSTAGRAM: https://www.instagram.com/toptradersunplugged SOUNDCLOUD: https://soundcloud.com/toptradersunplugged-com Follow Nick on LinkedIn https://www.linkedin.com/in