TTU36: A Look inside a Currency Trading Firm ft. Chris Cruden of Insch Capital Management – 2of2

In Part 2 of our conversation with the CEO of Insch Capital Management, we talk about how the firm’s trading models work and how they were built. We discuss how Insch deals with drawdowns, increased regulation, and marketing. This is a truly in-depth episode into the mind of a hedge fund Founder and the inner workings of an Alternative investment firm.

Welcome to the second part of our conversation with Chris Cruden.

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In This Episode, You’ll Learn:

• Indicators that are more robust than others.
• Chris’ views on stop losses.
• How his firm deals with risk and how he uses Index Risk.
• How correlations play a part in his models.
• About risk equivalency.
• how he deals with drawdowns.
• Why a sense of humor is important in this business, especially during drawdowns.
• How investors don’t share the same confidence in the model as managers and how managers can better share that confidence.
• How simple his system really is.
• Why you must have discipline. Many trend followers are making all-time highs but many people have announced the death of trend following time and time again.
• What the “black swan” event and the “gray swan” event would be for Chris’ business.
• The two kinds of research that his firm does.
• Why his team looks at emerging currencies in their research even though they do not trade them.
• What he is looking for in terms of red flags during his research that suggest models need to be tweaked.
• How he tries to stand out from the crowd in order to attract investors.
• Why he is based in Lugano, Switzerland.
• What Chris would ask David Harding if he was doing the interviewing instead of being interviewed.
• What investors forget to ask him.
• Why it’s a good idea to ask if you can try a dummy account with a new investment manager to see how it works.
• How he deals with the difficulties of regulation.

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Resources & Links Mentioned in this Episode:

• Market Wizards: Interviews with Top Traders
• Trend Following: How to Make Millions in Up or Down Markets

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