“If a model makes more money than you expected to in a short period, that is just as much reason for you to put up the hood and take a look at the engine as when you lose money.” – Mike Harris (Tweet)
Welcome to Part 2 of our conversation with Managed Futures expert and President Mike Harris of Campbell & Company. In this episode we delve into the specifics of Campbell & Company’s trading programs, how models are added or removed, and the importance of risk management. This episode also explores the managed futures industry as a whole and is a must-hear for anyone looking to gain knowledge about this strategy.
Thanks for listening and welcome to the second part of our discussion with Mike Harris.
In This Episode, You’ll Learn:
- About Campbell & Company’s trading program.
- How they create a trading strategy.
- Why they use a hypothesis driven system to add new models to their programs.
“We build models based on that economic thesis that we believe will stand the test of time.” – Mike Harris (Tweet)
- About the peer review process they use before adding or subtracting models.
- When do you remove a model? How do you know when it isn’t working anymore?
- About position sizing and why its important.
- How they look at risk through something called Vertical Risk and Horizontal risk.
- Campbell’s systematic approach to risk management.
- How he deals with drawdowns.
“In fact, drawdown recovery in managed futures is much better than traditional assets.” – Mike Harris (Tweet)
- Why he worries about systemic risk and natural disasters.
- Why Mike thinks redundancies are so important.
- The risk of regulation.
“The current regulation that the market is dealing with may actually be a benefit to our industry.” – Mike Harris (Tweet)
- How these strategies tend to perform when interest rates go up.
“In periods of high interest rates, CTAs were actually more profitable than in periods of declining interest rates.” – Mike Harris (Tweet)
- The trend of the managed futures industry and why it has been dominated by European firms in the past 10 years.
“We love competition; I don’t think we’d be involved in the financial markets if we didn’t love a good hearty competition.” – Mike Harris (Tweet)
- What people need to become a successful manager: humility is “at the top of the list.”
- Books that Mike recommends.
- What he would do differently if he could talk to his younger self.
- The importance of managing work and life balance.
“It’s a problem that you can never solve – and so having that passion and competitive spirit is crucial.” – Mike Harris (Tweet)
- What the future looks like for Campbell & Company.
Resources & Links Mentioned in this Episode:
- Learn more about Baltimore and Johns Hopkins University.
- Mike suggests reading:
This episode was sponsored by Swiss Financial Services:
Connect with Campbell & Company:
Visit the Website: www.campbell.com
Call Campbell & Company: +1-800-698-7235
E-Mail Campbell & Company: firstname.lastname@example.org
Follow Mike Harris on Linkedin
“We believe risk management is the difference between a good manager and an OK manager.” – Mike Harris (Tweet)