This podcast episode delves into the intricacies of quantitative research and trading strategies, emphasizing the critical role of backtesting as a validation tool rather than a primary research method. Throughout the discussion, important themes emerge, including the necessity of understanding data and models, the nuances of factor hedging in multi-manager hedge funds, the contrasting cultures of hedge funds and prop shops, and the unique challenges of building a crypto desk. It underlines the importance of robust risk management, particularly in volatile crypto markets, and reveals that finding new alpha requires a shift from traditional sources to real-time market observation and collaboration with other traders.
