This episode explores the application of trend-following strategies in cryptocurrency markets, featuring an interview with independent trader Scott Phillips. Against the backdrop of Phillips' unconventional background, the discussion delves into the unique challenges and opportunities presented by the crypto landscape. More significantly, the conversation contrasts "loose pants" trend-following systems—simpler, less mathematically rigorous approaches—with volatility-targeted strategies, highlighting the trade-offs between Sharpe ratios and convexity. For instance, Phillips details his own evolution from a loose pants system to a more sophisticated volatility-targeted approach, emphasizing the importance of feature selection and volatility normalization. As the discussion pivoted to operational aspects, the complexities of exchange selection, execution, and transaction costs in the fragmented crypto market were examined, including the role of "crime" as a unique market driver. Ultimately, the interview concludes with Phillips' vision for a decentralized, KYC-free platform leveraging blockchain technology to democratize access to sophisticated trend-following strategies for retail traders, reflecting emerging industry patterns in decentralized finance (DeFi).