I hope you are doing well on your journey. It has been a long time since we touched base. I have been incredibly busy to say the least, but at least I would say busy in a good way. I consider you one of my earliest mentors through your work that I have reviewed extensively. I will say that I have traveled some distance since that first introduction and continue to conduct rigorous research into the marriage between math/science and market mechanics. 2014 has been a very revealing year for me. I have realized a net ROI of approximately 80% in my retail futures account with a max drawdown of approximately 27%. I do not take this startup success for granted. My research has revealed that different market environments flatter different approaches. September-December has been interesting with the infusion of volatility into the markets benefiting my strategic and tactical approaches. I am also expanding on my arsenal of computer programming abilities as that is the language of mathematics in our day and age and essential for my further development as a market speculator. In 12 to 18 months I look forward to starting my own quant fund. I am enjoying this journey so much that I think this will likely become one of my life long endeavors. I wish you all the best and thank you for your immense contribution to my development as a trader. I look forward to speaking with you further when I am at a certain stage of my development as a money manager and perhaps meeting you in person one day as well.
My guests today are Zbigniew Hermaszewski and Natasha Reeve-Gray, two of the four founding partners of Altis Partners–a very successful systematic and primarily trend following money management firm.
The topic is Trend Following.
In this episode of Trend Following Radio we discuss:
Covel’s recent experiences traveling in Asia
The advantages of location independence
Early triggers that led Hermaszewski and Reeve-Gray into the systematic trading world and away from the efficient market hypothesis
Why Hermaszewskii was motivated to go down the particular path he went down
The advantages of a physics background when applied to trading
Looking for predicability in the markets
How Altis uses predictability in the context of their world
The four broad types of market behavior in Altis’ program
Trend following and persistence
Inter-market relationships
Why there are no “manual” inputs in Altis’ systematic program
Portfolio construction and why Altis is different from its peers
Applying the same models to all markets
The collegial atmosphere amongst London CTAs
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Hey Michael, if you had a 23 yr old wanting to become a CTA, graduating with a degree in Finance from U. South Florida in May, is there a certain firm you would push him towards? Two summers ago he did an internship with [Name] Capital ($106 mln AUM), last summer with R.J. O’Brien’s CTA platform Oasis. He works two days/week with me holding down our trade desk. We work with commercial Ag hedgers. Any ideas would be helpful. [Name] gave Patrick your book on the TurtleTraders 1st day on the job, along with 4 other books on trading.
No short cuts. All the trading “names” are well known. It’s an issue of knocking on doors. Seth Godin’s blog may give you a good non-trading perspective that will better help him to break into trading.
Hi Michael, I really enjoy your podcast and the alternative ideas you put out. Please keep up the good work! I was wondering if you could help me with a question please. If one had around USD100,000 to allocate to a trend following manager would there be one or a couple of stand-out managers that you would put forward. I understand you are obviously not in a position to make specific recommendations: the question really just goes to accessibility of particular funds for that size of investment, as I understand that amount is too small for many funds. I have been in contact with [Name] at [Name] already, but would like to thoroughly explore options. I would prefer a manager that only takes carried interest and no fees in down period. By way of background I am Australian citizen but a long term resident of Japan.
Many thanks
[Name]
Absolutely no names, other than all the leads you can find across my podcast and books!
“The fundamentals should not lead to this dramatic reduction (in price). I believe that speculation has entered strongly in deciding these prices.”
Name a time when speculation did not play a role in markets? Asked why speculation was back, el-Badri said:
“I have no idea.” [Covel: “WTF!”]
Speculation never went away. The markets are zero sum. There will always be winners and losers. Some, like Abdallah Salem el-Badri, don’t like to lose and unnamed speculators thus get positioned as “bad”.
Bottom line, speculators just happen to be the wise winners this time.
My guest today is Jim Rogers, an American businessman, investor and author currently based in Singapore. He is the Chairman of Rogers Holdings and Beeland Interests, Inc. He was the co-founder of the Quantum Fund and creator of the Rogers International Commodities Index (RICI). Rogers does not consider himself a member of any school of economic thought, but has acknowledged that his views best fit the label of Austrian School of economics.
The topic is investment.
In this episode of Trend Following Radio we discuss:
Why it shows that the kind of people that travel are the kind of people you want in your country
Infrastructure in China
Stereotypes of various countries in Asia
China’s military
Current Fed policy in America
What “can-do” spirit can do in a state of decline
Why the next crisis might be worse than the last
The importance of language skills
Participating in big long-term bets with regard to countries
Why, if he could, Rogers would put all of his money into North Korea
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