SI392: The Hidden Cracks in Systematic Strategies No One Talks About ft. Nick Baltas

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. ----- 50 YEARS OF TREND FOLLOWING BOOK AND BEHIND-THE-SCENES VIDEO FOR ACCREDITED INVESTORS - CLICK HERE ----- Follow Niels on Twitter , LinkedIn , YouTube or via the TTU website . IT’s TRUE ? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here . And you can get a free copy of my latest book “ Ten Reasons to Add Trend Following to Your Portfolio ” here . Learn more about the Trend Barometer here . Send your questions to info@toptradersunplugged.com And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes or Spotify so more people can discover the podcast. Follow Nick on Twitter . 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 Copyright © 2025 – CMC AG – All Rights Reserved ---- PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey: 1. eBooks that cover key topics that you need to know about 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. Click Here 2. Daily Trend Barometer and Market Score 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! Click Here 3. Other Resources that can help you 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. Click Here Privacy Policy Disclaimer

You can listen to SI392: The Hidden Cracks in Systematic Strategies No One Talks About ft. Nick Baltas online on Radio and Podcast. Open the player on this page to stream the available audio.

SI392: The Hidden Cracks in Systematic Strategies No One Talks About ft. Nick Baltas is an episode from Top Traders Unplugged by Niels Kaastrup-Larsen.

This episode is 01:04:58 long.

This episode was published on Mar 21, 2026.

Yes. Use the heart button on the episode page to add it to your favorite episodes list.

Yes. This page shows related episodes from Top Traders Unplugged when more episodes are available from the podcast feed.