05 What You Must Do To Survive In This Business with Tushar Chande of Rho Asset Management – 1of2
Summary: “You have to be an optimist in this business to survive, you have to bring an original point of view, why you want to do it in a certain way and you need to be able to explain to people in a way that makes sense to them why you are doing what you are doing”<br> On today’s show I am talking to Tushar Chande, Co-Founder and Head of Research at Rho Asset Management. Tushar is also the author of a number of books on the topic of how to design rule based trading systems as well as having been actively trading these systems for more than 20 years.<br> <br> Thank you for visiting, now let's get to the interview with Tushar Chande.<br> <br> <br> In This Episode, You'll Learn:<br> <br> Why the random nature of the markets attracted Tushar to develop systems for trading these markets<br> Background information on Rho Asset Management and it's philosophy<br> How Tushar utilizes behaviors of discretionary traders to make estimates of conviction about their individual trades<br> How Rho has designed it's Altius Program to offer meaningful protection when equity markets go down<br> <br> "We try to automate all the immediate trading tasks and processes so that we can have tremendous control, consistency and disciplined action at all times."<br> <br> What to be aware of when exploring an Asset Manager's performance over a 20 year period<br> Offense/Defense Ratio, What it means and How to use it to Measure the quality of systems design<br> <br> "We've mostly gone with break out style systems as opposed to a moving average cross over type systems."<br> <br> How Rho's models have been designed in order to achieve the overall objective of the Program<br> What Trend Following Indicators are used for and why<br> Exploring the volatility of the equity curve<br> The input data needed to run the the Altius Program, the time it takes and when they run the model<br> <br> "The core advantage of having a CTA in your portfolio is to be able to offset significant declines in the equity and bond markets."<br> Resources & Links Mentioned in this Episode:<br> Beyond Technical Analysis by Dr. Tushar Chande<br> <br> Learn about the Rho Trend Barometer: Hedge Fund Journal - Rho Trend Barometer Explained (PDF download)<br> "And all the rules are automated so in terms of day to day we don't really have to think because that's all taken care of"<br> Sponsored by Swiss Financial Services and Saxo Bank:<br> <br> Connect with Rho Asset Management:<br> Visit the Website: Rho Asset Management<br> <br> E-Mail Rho Asset Management: investor@rhoam.ch
