003 - Two Quants - Moritz Seibert & Moritz Heiden (Part I)

Systematic trading relies on robust, simple models that avoid the pitfalls of overfitting and excessive parameterization. Moritz Seibert and Moritz Heiden of Takahe Capital emphasize the necessity of maintaining a disciplined, long-term perspective, allowing winning trades to run while strictly limiting losses. Their approach prioritizes risk management through diversification across uncorrelated markets rather than relying on complex volatility-targeting overlays, which they argue often introduce unnecessary transaction costs and distort return distributions. By treating open trade equity as a natural byproduct of market participation and avoiding the "silent risks" associated with short-volatility strategies, they maintain a resilient framework capable of surviving extreme market events. This methodology focuses on capturing outsized gains in the tails of the distribution, viewing volatility not as a risk to be eliminated, but as an inherent component of profitable, systematic trend-following.