My guest today is Jean-Philippe Bouchaud, the Chairman of the multi-strategy quantitative hedge fund Capital Fund Management (5B+ AUM) and co-supervisor of the research team. He is a well known authority in the field of Econophysics, co-author of “Theory of Financial Risks and Derivative Pricing”, a Professor of École Polytechnique where he teaches Complex Systems and has his Ph.D in theoretical physics from École Normale Supérieure.

The topic is Trend Following.

In this episode of Trend Following Radio we discuss:

Bouchaud’s physics background and how it collided with the world of classical economics
The Black-Scholes model, and its still use; experimenting with simulation
Bouchaud and his colleague’s paper, “Two Centuries of Trend Following“
The efficient market hypothesis
Why the existence of trends is one of the most statistically significant anomalies in financial markets
How trends predate trend following
Why classical economics has no framework through which to understand “wild markets”
Benign randomness vs. wild randomness
Accepting uncertainty
Differences between physicists and economists

Jump in!

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I’m MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I’m proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.

To start? I’d like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/

You can watch a free video here: https://www.trendfollowing.com/video/

Can’t get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast

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Hope you enjoy my never-ending podcast conversation!

Ep. 242: Jean-Philippe Bouchaud Interview with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

Ep. 242: Jean-Philippe Bouchaud Interview with Michael Covel on Trend Following Radio