The Overlooked Markets Creating Better Trend Opportunities | Open Interest | Ep.21

Description

What if the real edge in markets is not in adding more assets, but in choosing fundamentally different ones? In this episode, Moritz Siebert speaks with Tom Babbedge about why alternative commodity markets offer a distinct source of diversification and trend. They explore how structural supply and demand imbalances create persistent price moves, why many financial markets behave as one during stress, and how capacity constraints shape portfolio construction. The conversation also examines how markets are selected, how execution differs from traditional CTAs, and why understanding who trades a market may matter more than any backtest. #toptraders #investing #trendfollowing Episode TimeStamps: 00:00 - Introduction to the episode and guest 02:04 - Why focus only on commodity markets 03:59 - The myth of diversification through more markets 05:01 - Structural differences within commodity markets 06:22 - Why financial markets behave as one in crises 07:57 - Capacity constraints and portfolio construction 11:18 - Adding and removing markets from the portfolio 13:28 - How to identify truly alternative markets 16:40 - Trend quality vs trend quantity explained 19:11 - Structural drivers behind commodity trends 20:01 - Case study European carbon and trend persistence 26:59 - Execution as an edge in systematic trading 32:42 - Reducing trading costs through patience 40:09 - Why investors allocate to alternative commodity strategies Full episode can be found here: https://toptradsersunplugged.com/oi21 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 Moritz on Twitter https://www.linkedin.com/in/mseibert Foll