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72 He Adds Value to His System with Mike Shell of Shell Capital Management – 2of2

“Our asymmetry managed account was made for a very specific type of person. Most of them have the entirety of their portfolio with our firm.” – Mike Shell (Tweet)

In the second part of our talk with Mike Shell, we delve into the specifics of his program and why most of his clients have 100% of their investments with his firm. He discusses backtesting, risk management, and the differences between purely systematic systems and systems with a discretionary element. Listen in for an inside look at this fascinating firm.

Thanks for listening and welcome back Mike Shell.

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In This Episode, You’ll Learn:

  • How people should look at Mike’s 10 year track record and how his models have evolved over that time.
  • How much of the strategy is machine run and how much is human run.

    “You’re mathematically able to determine how much should you bet at each position, and how you should define a trend.” – Mike Shell (Tweet)

  • What he does when he backtest a system.
  • How he started out as a chartist in the 1990s.
  • What is it that he can’t systematize.

    “I have 33 systems that I manage and run.” – Mike Shell (Tweet)

  • The difference between a trader that is purely systematic and one that has a discretionary element, however small.

    “It’s rare that I don’t take a signal that is given, because it is systematic, but there are times when I choose to hedge something.” – Mike Shell (Tweet)

  • How his investors use his program.
  • What his approach to risk management is and how it plays out with his program.

    “I only risk a certain amount at a time. If you don’t want to have a 20% drawdown or more, you’re going to have a limit of how much open risk you have on at any given time.” – Mike Shell (Tweet)

  • Why he doesn’t take on much short exposure.
  • What’s the biggest challenge with his business right now.
  • How to expand the customer base to investment advisors.
  • What books Mike would recommend.
  • What he’d do differently if he had to start all over today.

Resources & Links Mentioned in this Episode:

Mike recommends:

This episode was sponsored by Swiss Financial Services:

Connect with Shell Capital Management:

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E-Mail Shell Capital Management here.

Follow Mike Shell on Linkedin

“I’m very prepared for whatever is going to happen next. I’m not worried about what the markets are going to do.” – Mike Shell (Tweet)