10. Bastian Bolesta: Chaotistan vs Normalstan, Momentum vs Trend, Sharpe Ratio

In this episode, we talk with Bastian Bolesta, CEO of Deep Field Capital, a systematic long volatility manager based in Switzerland. 

 

We start off by talking about the difference between systematic and discretionary trading styles and why systematic may make more sense if you live in what Bastian calls Chaotistan instead of Normalstan. 

 

We then dive into the difference between Momentum and Trend styles of investing and the types of markets that each thrive in, how using a Sharpe ratio to measure risk can actually increase the risk of a portfolio.

 

We also talk about the benefits of trading markets intraday instead of holding positions over night and when it makes sense. Finally, we talk about the relationships between US, Europe and Asian markets and how investors can take advantage of it.

 

I hope you enjoy this conversation as much as I did.