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.”

*This was originally published in Top Traders Unplugged.