Scott Phillips - Finding Ugly Edges in Crypto Markets (S7E15)
Episode publishedPodcast: Flirting with ModelsFlirting with Models
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Hey, everyone. Corey here. Thanks for tuning in to another episode of Flirting with Models. If you're enjoying the show, I'd greatly appreciate it if you take a moment to rate, review, and most importantly, share with a friend. Word-of-mouth is how this podcast grows. And if you'd like to learn more about Newfound's platform of return stacked mutual funds, ETFs, and model portfolios, head over to returnstacks.com. Now on with the show. Three, two, one. Let's jam. Hello, and welcome, everyone. I'm Corey Hofstein, and this is Flirting with Models, the podcast that pulls back the curtain to disco
Corey Hofstede is the cofounder and chief investment officer of Newfound Research. Due to industry regulations, he will not discuss any of Newfound Research's funds on this podcast. All opinions expressed by podcast participants are solely their own opinion and do not reflect the opinion of Newfound Research. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Newfound Research may maintain positions and securities discussed in this podcast. For more information, visit thinknewfound.com.
Scott Phillips is just the second independent trader I've interviewed on this show. Like many independent traders, Scott found that his constraints, including the size of his capital pool, the ability to execute trades efficiently, and a lack of supporting infrastructure, made trading anything but loose pants trend following almost impossible in traditional markets. These constraints led Scott to look for easier markets to trade, markets where the edges were so big they could survive inefficient implementations, all of which brought Scott to crypto in the late two thousand tens. While our conv
Sure. It's a great honor to be here. I'm obviously not anywhere near the caliber of the usual guess. I'm a retail guy and a retail trader who's just gradually upskilled myself by starting with really simple systems and then gradually upskilled myself to better and better systems. And so we have this weird story of my life, which I'm kinda where you're getting bogged down. And the short version of that is that I lived the kind of life where getting arrested or going to jail wasn't unusual. It was just like a normal Tuesday, and I was more or less a career criminal. And the Australian justice sy
I'm excited to dive into all that. My guess is there's a good 90% of my listeners who have no idea what you mean when you talk about bringing your process on chain onto HyperLiquid l one, creating a vault, giving a single click access with no KYC. And so I wanna come around back to that at the end of the conversation because I think that'll be a fun place to end. So here's where I wanna start. I wanna work backwards if you'll allow me. You started to get into it a little bit, but what does the program look like as it stands today? More specifically, what are you trading? What's driving those d
that point. So where we're at today is what we call CTA style, vault targeted trend volume. So what we're doing is we're taking our signal, and that signal is a blend of a bunch of different, very standard looking, except for one of them, trend following features, pretty much the same as every other firm does. If that signal is positive, we're going long. If that signal is negative, we're going short. If that signal is bigger, we're going more long up to a point where it's capped. And the usual way is to either cap it or apply a sigmoid function to it. Very standard stuff in in the trend follo
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