My guest today is Mike Harris, the President of Campbell & Company (3B+ AUM), the systematic trading firm started by Keith Campbell (Campbell was featured in Covel's first book Trend Following).
The topic is Trend Following.
In this episode of Trend Following Radio we discuss:
- Systematic trading in the early 70's
- Education about managed futures
- Correlation with other markets and managers
- Trading diverse markets
- Focusing on data rather than the fundamentals
- Why "commodities" and "CTA" are misnomers
- Why Harris wouldn't fly down to Brazil to investigate fundamental information on the coffee market
- Risk management, drawdowns, and taking small losses; dealing with uncertainty and helping clients to understand the uncertain nature of trading
- How human emotion often gets in the way of profitable trading
- The efficient market hypothesis and behavioral finance
- Continuity and how that has been thought through at Campbell & Company
- The Sharpe ratio and why it isn't the best way to look at systematic traders
- Why being defensive is central to being a great absolute return trader
Jump in!
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I'm MICHAEL COVEL, the host of TREND FOLLOWING RADIO, and I'm proud to have delivered 10+ million podcast listens since 2012. Investments, economics, psychology, politics, decision-making, human behavior, entrepreneurship and trend following are all passionately explored and debated on my show.
To start? I'd like to give you a great piece of advice you can use in your life and trading journey… cut your losses! You will find much more about that philosophy here: https://www.trendfollowing.com/trend/
You can watch a free video here: https://www.trendfollowing.com/video/
Can't get enough of this episode? You can choose from my thousand plus episodes here: https://www.trendfollowing.com/podcast
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Hope you enjoy my never-ending podcast conversation!
Michael Covel's Trend Following