051 - Samir Varma - Classify Risk Don't Chase Alpha

051 - Samir Varma - Classify Risk Don't Chase Alpha

From The Algorithmic Advantage by The Algorithmic Advantage

April 14, 2026 · 1h 3m · Season 1 · Episode 51

About this episode

Samir Varma discusses his unique approach to risk management in quant trading, emphasizing classification over prediction.

What does a quantum physicist & inventor bring to quant trading? He thinks differently and is purposefully anti-alpha - instead focusing on risk management. After years of trying conventional risk models, Samir’s conclusion was not that risk is impossible to model. It was that most people are solving the wrong problem. They try to predict exact future risk levels. His approach shifted to classifying market states instead: when risk is low, be exposed; when risk is high, reduce or eliminate exposure. That is a profound change in mindset. Prediction asks for precision. Classification asks for usefulness. And in markets, usefulness usually wins. My in-depth analysis and write-up: https://algoadvantage.substack.com Courses & Community: https://algoadvantage.io

People in this episode

Host: The Algorithmic Advantage

Guest: Samir Varma

Topics covered

  • quant trading
  • risk management
  • market states
  • investment strategy
  • mindset shift

Keywords

  • quant trading
  • risk management
  • market states
  • investment strategy
  • alpha
  • risk models
  • mindset

Mentioned in this episode

Organizations: Algorithmic Advantage

Books & works: Classify Risk Don't Chase Alpha

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