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16 You Can’t Learn This In A Book! with Karsten Schroeder of Amplitude Capital – 2of2

Karsten Schroeder of Amplitude Capital with Niels Kaastrup-Larsen on Top Traders Unplugged

“I don’t think that anything you can read in a book will work in the sort term trading space.” – Karsten Schroeder (Tweet)

Welcome back to Top Traders Unplugged. On this episode Karsten and I discuss the systems and implementation that has led Amplitude to such remarkable success. As the interview comes to a close, we learn about Karsten’s philosophy of success and entrepreneurship. Despite being based outside the global financial hubs (i.e. New York, Chicago, London) Amplitude has experienced world class results. He provides a deep philosophy on achieving success in the CTA industry.

Thank you for listening episode #016, where we continue our conversation with Karsten Schroeder of Amplitude Capital.

In This Episode, You’ll Learn:

  • Allocation of capital from a stop-loss point of view when doing short term trading
  • Amplitude Capital’s systems for trade implementation
  • Why high frequency trading is a very different strategy from that of Amplitude Capital’s

“We are running 5 days a week, 24 hours a day.” – Karsten Schroeder (Tweet)

  • Risk management strategies and the framework for embedding these principles into the Amplitude Capital operations
  • Exploring the meaning of market correlation in short term CTA strategies
  • Karsten Schroeder’s philosophy on drawdowns

“When you cut a drawdown you lock in the loss and you will limit yourself in the recovery.” – Karsten Schroeder (Tweet)

  • How managers can do a better job of explaining drawdowns
  • The role of teamwork and processes in the research cycle
  • The internal processes for validating implementation of strategies at Amplitude Captial

“We have no interest what-so-ever in hot money.” – Karsten Schroeder (Tweet)

  • Karsten Schroeder’s explanation for why Amplitude has experienced such success
  • Do financial leaders need to live in financial hubs? How living outside of the financial hubs has impacted Amplitude Capital
  • The difference between European CTA managers and US counterparts. Why has the market dominance shifted?

“Stay entrepreneurial, don’t become a manager.” – Karsten Schroeder (Tweet)

  • The philosophy of failure that empowers Karsten Schroeder’s entrepreneurial journey
  • What continues to inspire Karsten to keep running the business
  • The question investors are not asking that they should be:

“…spending more time asking where the money was made and how it was made.”

Sponsored by Swiss Financial Services and Saxo Bank:

Saxo Bank Sponsor of Top Traders Unplugged

Connect with Amplitude Capital:

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Call Amplitude Capital: ++41-41-747 15 00

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“Nobody can tell you beforehand how big a drawdown is going to be. There are statistics where you can say, “well a drawdown should not be bigger than 1.5 times the volatility,” but given the wrong market environment it can be bigger.” – Karsten Schroeder (Tweet)