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40 What To Do If You Are Making Too Much Money! with Mike Harris of Campbell & Company – 2of2

“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.

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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:

This episode was sponsored by Swiss Financial Services:

Connect with Campbell & Company:

Visit the Website:

Call Campbell & Company: +1-800-698-7235

E-Mail Campbell & Company:

Follow Mike Harris on Linkedin

“We believe risk management is the difference between a good manager and an OK manager.” – Mike Harris (Tweet)