SI287: No Pain, No Gain ft. Katy Kaminski

<p>Today, we welcome Katy Kaminiski back to the show as we reflect on her entry into the trend following space and what she has learned on her systematic journey. We also discuss different ways of allocating risk in portfolio construction and why Katy “loves skewness”, why preparing for pain can actually lead to better decisions as an investor and how changes in the global macro environment takes time to manifest in trends. Lastly, we discuss what we are both excited and nervous for in 2024.</p><p><strong>-----</strong></p><p><strong>50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - </strong><a href="https://dunncapital.com/DUNN%2050-Year%20Book-TTU" rel="noopener noreferrer" target="_blank"><strong>CLICK HERE</strong></a></p><p>-----</p><p><br /></p><p>Follow Niels on <a href="https://twitter.com/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>Twitter</strong></a>, <a href="https://www.linkedin.com/in/nielskaastruplarsen" rel="noopener noreferrer" target="_blank"><strong>LinkedIn</strong></a>, <a href="https://www.youtube.com/user/toptraderslive" rel="noopener noreferrer" target="_blank"><strong>YouTube</strong></a><strong> </strong>or via the <a href="https://www.toptradersunplugged.com/" rel="noopener noreferrer" target="_blank"><strong>TTU website</strong></a>.</p><p><strong>IT’s TRUE </strong>? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written&nbsp;<a href="https://www.toptradersunplugged.com/Ultimate" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>And you can get a free copy of my latest book “<strong>Ten Reasons to Add Trend Following to Your Portfolio</strong>” <a href="https://www.toptradersunplugged.com/10-reasons-shownotes" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Learn more about the Trend Barometer <a href="https://www.toptradersunplugged.com/resources/market-trends/" rel="noopener noreferrer" target="_blank"><strong>here</strong></a>.</p><p>Send your questions to&nbsp;<a href="mailto:info@toptradersunplugged.com%22%20%5Ct%20%22_blank" rel="noopener noreferrer" target="_blank">info@toptradersunplugged.com</a></p><p>And please <strong>share this episode</strong> with a like-minded friend and <strong>leave an honest Rating &amp; Review</strong> on&nbsp;<a href="https://www.toptradersunplugged.com/reviewttu" rel="noopener noreferrer" target="_blank"><strong>iTunes</strong></a>&nbsp;or <a href="https://open.spotify.com/show/2OnOvLbIV3AttbFLxuoaBW" rel="noopener noreferrer" target="_blank"><strong>Spotify</strong></a> so more people can discover the podcast.</p><p>Follow Katy on <a href="https://www.linkedin.com/in/kathryn-kaminski-phd-caia-9731445/" rel="noopener noreferrer" target="_blank"><strong>LinkedIn</strong></a><strong>.</strong></p><p><strong>Episode TimeStamps: </strong></p><p><strong>00:50 - </strong>What has been on our radar recently?</p><p><strong>03:03 - </strong>When are trends coming to an end?</p><p><strong>06:24 - </strong>Industry performance update</p><p><strong>07:31 - </strong>How did Katy end up in the trend following industry?</p><p><strong>11:19 - </strong>What attracted her to the industry?</p><p><strong>12:40 - </strong>What Katy has learned from being an allocator</p><p><strong>15:44 - </strong>Risk variations in portfolio construction</p><p><strong>20:21 - </strong>What drives the biggest dispersion?</p><p><strong>21:54 - </strong>Understanding risk in your portfolio</p><p><strong>24:05 - </strong>Constant vol targeting - just a phase?</p><p><strong>25:25 - </strong>The importance of skewness</p><p><strong>31:06 - </strong>Mind the timeframe</p><p><strong>34:57 - </strong>Preparing for pain ahead of time (MAN Paper)</p><p><strong>38:15 - </strong>No pain, no gain...</p><p><strong>43:28 - </strong>Economic trend (AQR Paper)</p><p><strong>47:33 - </strong>Dealing with a world in disruption</p><p><strong>50:48 - </strong>Excitement and worries about 2024</p><p><strong>57:05 - </strong>What is up for next episode?</p><p>Resources discussed in this Episode:</p><ul><li><a href="https://www.man.com/maninstitute/views-from-the-floor-2024-January-23">LINK SI281: History Shows What to Expect from Trend-Following When Rates Are Being Cut</a></li><li><a href="https://www.alphasimplex.com/insights/">LINK: Insights from AlphaSimplex</a></li></ul><br /><p>Copyright © 2025 – CMC AG – All Rights Reserved</p><p>----</p><p><strong>PLUS:</strong> Whenever you're ready... here are 3 ways I can help you in your investment Journey:</p><p><strong>1. eBooks that cover key topics that you need to know about </strong></p><p>In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. <a href="https://www.toptradersunplugged.com/resources/ebooks/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><strong>2. Daily Trend Barometer and Market Score </strong></p><p>One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! <a href="https://www.toptradersunplugged.com/resources/market-trends/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><strong>3. Other Resources that can help you</strong></p><p>And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. <a href="https://www.toptradersunplugged.com/resources/" rel="noopener noreferrer" target="_blank"><strong>Click Here</strong></a></p><p><a href="https://www.toptradersunplugged.com/legal/privacy-policy/" rel="noopener noreferrer" target="_blank">Privacy Policy</a></p><p><a href="https://www.toptradersunplugged.com/disclaimer/" rel="noopener noreferrer" target="_blank">Disclaimer</a></p>