In commodity trading, where volatility reigns supreme, finding an edge can be daunting. In this episode of The Derivative, we switch up our normal Commodity Trading talk with our non-trend following guest, Jae-Min Hyun of NWOne. With extensive experience in commodities trading and a quant background that spans Wall Street firms, hedge funds, and a new talent incubator, Jae-Min brings a wealth of knowledge to the table.

Join us as we explore the intricate intricacies of building a systematic commodity trading strategy using fundamental inputs instead of just price, why inefficiencies equal edge, the importance of risk management, the role of machine learning, and the rest of the challenges of navigating this dynamic market. Jae-Min Hyun's insights shed light on the complexities of this niche within the world of finance, offering valuable perspectives for both seasoned traders and those seeking to understand the nuances of commodity trading — SEND IT!

Chapters:

00:00-01:32= Intro

01:33-15:49= NYC is wet, but back! An early start at Morgan Stanley constructing commodities & building Quants

15:50-29:25= Exacting Alpha in inefficiencies, market fundamentals, directional futures & diversification

29:26-43:20= Calendar spreads (delivering exposure) and all models working in concert

43:21-54:04= Why only commodities? Research, systematic strategies & the competition

54:05-01:05:46= Commodity exposure, alpha generation & A.I. in quant trading

From the episode:

NWOne Diversified Strategy

The Predictors - Book

Semi-Annual Rankings Whitepaper

Follow along with Jae-Min on LinkedIn and for more information visit NWOne's website www.nwone-llc.com

Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠www.rcmalternatives.com/disclaimer

Systematic Commodity Trading (without Trend) with Jae-Min Hyun of NWOne

The Derivative