Is Trend Following Dead? (Again…) A Deep Dive with Crabel’s Grant Jaffarian

In this episode of The Derivative, Grant Jaffarian of Crabel Capital Management discusses trend following and alternative investment strategies with host Jeff. Jaffarian shares his background, from working on the Chicago Mercantile Exchange to his current role at Crabel, highlighting the firm's focus on short-term trading and its evolution into trend following. The conversation explores the challenges facing emerging managers, the impact of latency on trading, and the changing dynamics of trend following, including the decline in Sharpe ratios and the debate over positive convexity. Jaffarian emphasizes the importance of adapting to market changes and maintaining a research-oriented approach to benefit institutional portfolios, while also touching on the potential of quantum mechanics and AI in the future of trading.