VOL10: Why We All Need Volatility ft. Cem Karsan

Hari Krishnan is joined today by Cem Karsan, to discuss feedback loops across different markets, the decision to manage outside money, how institutions make trading decisions, the global macro effects from COVID-19, the importance of dealer flows in the markets, the feedback loop between options and their underlying assets, and approaches to delta hedging. ----- JOIN THE TREND FOLLOWING MANIFESTO BOOK LAUNCH LIST TO GET SPECIAL LOW PRICE ON OUR UPCOMING BOOK DURING THE FIRST WEEK! - CLICK HERE In this episode, we discuss: How market behaviour is often intertwined Why Cem chose to manage outside capital The thinking behind institutional market moves How the global pandemic affected markets Dealer flows Feedback loops Delta hedging 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 [email protected] 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 Hari on Twitter. Follow Cem on Twitter. ----- Episode TimeStamps: 00:00 - Intro 02:17 - Cem’s background, and current work 19:18 - The decision to manage outside money 24:06 - The trades that institutions like to make 30:22 - Feedback loops within markets 34:17 - The dynamic between futures and options 51:15 - Using Econophysics to find hedging methods 53:40 - Building various volatility models and research using toy models 57:05 - Approaches to Delta hedging 01:00:11 -Changes to qualitative features of overnight indices 01:03:12 -Investment products on the VIX and effects on the S&P 500 01:10:09 -The feedback loop between inflation, deflation and central bank rate policies 01:20:01 -Whether or not there is an asymmetry between deflation and inflation risk Copyright © 2026 – 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