The Daily Brief Niels Kaastrup-Larsen: Discipline, Drawdown and Trend Following | In The Money by Zerodha Podcast
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Mar 15, 2026 Niels Kaastrup-Larsen, seasoned trend-following investor and Top Traders Unplugged host, discusses discipline, drawdowns, and why robustness beats short-term results. He covers trend challenges in 2025, how exits shape profits, managing portfolio versus single-market losses, and cautious use of AI and alternative markets. The focus is on mindset, process, and staying resilient when markets test you.
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Control Leverage With Volatility And VaR Not Notional
- Leverage is better controlled via risk metrics like expected volatility and value at risk than raw notional multiples.
- Niels describes per‑market volatility sizing, portfolio aggregation and dynamic reductions as preferred tools over quoting notional leverage.
Exit Rules Define How Much Trend You Capture
- Exits often determine how much of a trend you actually capture because many entry methods pick up trends similarly.
- Niels points out rapid reversals require quick exits while slow reversals can be managed differently, affecting realised gains dramatically.
Don’t Drop Markets Mid Drawdown Because Trends Can Emerge
- Resist tinkering with your market list during drawdowns; keep an open mind because markets that ranged for years can later trend strongly.
- Niels cites cocoa as a market that was flat from 2005–2022 but became a major CTA contributor in 2023–24.