Top Traders Unplugged

“You need to protect your emotional capital as well. As a general rule you don’t want to be in a position when your emotions are clouding your judgement.” – Mike Coleman (Tweet) In the second part of our conversation with Mike Coleman, we explore the different commodity markets and how RCMA trades them, and look back…

"Commodities have this romance and physicality that is sort of missing in bonds and equities on pieces of paper." - Mike Coleman (Tweet) Our next guest lives in Singapore, where he founded a firm that trades in the commodity markets. In this episode, we trace his upbringing in the UK and his first job at Cargill to the start of his firm. We discuss the growth and downsizing periods he has gone through and how he builds a successful business. Thanks for listening and please welcome Mike Coleman. Subscribe on: In This Episode, You'll Learn: Where Mike grew up and how his upbringing shaped his career. "From quite an early age, I was always trying to figure out how you might be able to make money." - Mike Coleman (Tweet) How he was interested in travel from an early age, and found out about commodity trading in his final year of university. How he started out as a commodity merchant with Cargill. How he fell into rubber trading which led him to Singapore in 1984. About the beginnings of RCMA. "We gave the market the product we had - and we were lucky that it happened to coincide with the period when the market really wanted the product." - Mike Coleman (Tweet) How the commodity markets have changed over the years, and what kinds of companies are still working with commodity trading. The most important things he learned at Cargill that helped in the management of his own firm. What he learned before computers become ubiquitous on trading desks. "One of my jobs was to do the P&L by hand, hard to imagine these days." - Mike Coleman (Tweet) What Mike likes to do in his spare time. How to make sure you are set up for success when you start a business or firm. How you get through the hard times of your business as an entrepreneur. What he does to organize his firm to make it run in the best way possible. How they’ve dealt with a boom and bust phase in their business, including personnel. "2011 was really the most difficult year for us and everyone." - Mike Coleman (Tweet) The way that he has built the culture in his business. How investors should read a track record from a discretionary trader. What patterns he looks for when trading for commodities. "What happens in China is important, and it’s very important for many commodities." - Mike Coleman (Tweet) Resources & Links Mentioned in this Episode: Learn more about Cargill here. This episode was sponsored by Swiss Financial Services: Connect with RCMA: Visit the Website: www.rcma-commodities.com Call RCMA: +(65) 63322282 E-Mail RCMA: info@tongteik.com.sg Follow Mike Coleman on Linkedin "You have to be able to demonstrate to people that you can run a business as well." - Mike Coleman (Tweet)

"If you really believe in what you’re doing - you should not be de-levering in a drawdown." - Kim Bang (Tweet) In our second part of this conversation, we dive into the details of the program that Kim runs. We discuss why it's important to stick with your models, even in times of severe drawdowns, and how Kim views risk. He also talks about the books and people that have inspired him in his career. Thanks for listening and please welcome back Kim Bang. Subscribe on: In This Episode, You'll Learn: The details behind the program Kim runs. "I think there’s a direct correlation between the simpler a model is, the more robust it is." - Kim Bang (Tweet) What he feels about larger drawdowns. "If you believe in your models, never ever deviate from them." - Kim Bang (Tweet) What kind of indicators goes into the models that he uses. "We are probably out of the markets about a third of the time." - Kim Bang (Tweet) Why he uses a non-cyclical approach to creating trading models. How he looks at volatility. What kind of mean reversion strategies he uses. How he responded to the Swiss Franc move. "In general - these are the kinds of events that we live for." - Kim Bang (Tweet) How Kim quantifies risk. How do you prepare for a drawdown when you haven’t gone through a significant one? How his firm comes up with new ideas and goes about doing research. The positives and challenges with working as a father and son team in the same firm. How he knows when a model has stopped working. What he is doing to launch his first fund. "We have an inverse problem, where it’s costing us to keep money in cash." - Kim Bang (Tweet) What questions investors should be asking in due diligence conversations with him. "Most of the conversations we’ve had so far are with these early adopters, and they are very savvy." - Kim Bang (Tweet) What books have impacted Kim’s career. How he sees the firm in the future. Resources & Links Mentioned in this Episode: Books that have influenced Kim include Market Wizards, The Quants, and books by Ralph Vince. Learn more about people who have inspired Kim, including Roy Niederhoffer, Welles Wilder, and John Henry. This episode was sponsored by Swiss Financial Services: Connect with Prolific Capital Markets: E-Mail Prolific Capital Markets : kbang@prolific-capital.com Follow Kim Bang on Linkedin "If you want to be in this space at the cutting edge and you want to compete, you have to be somewhat original. Not completely from scratch, but somewhat original in the way you extract earnings." - Kim Bang (Tweet)

"There’s a long tail of smaller managers that have to fight over the scraps." - Kim Bang (Tweet) Kim Bang grew up with his father's shipping industry in Denmark, and discovered a fascination of the managed futures industry. He went on to work for companies such as Bloomberg and AIG, before founding his current firm with his son. Listen to his story and find out what makes a firm that can compete in the managed futures industry. Thanks for listening and please welcome Kim Bang. Subscribe on: In This Episode, You'll Learn: How Kim grew up in Denmark with his dad in the shipping business. How he got into futures markets through his dad’s business. Kim’s education in the U.S. and his first job on Wall Street. "I decided I better get a real paying job, so I had to put my passion on hold at that time." - Kim Bang (Tweet) How he left AIG to start his own business. His time at Bloomberg building and running their TradeBook system. "I felt their was an opportunity to take this platform and bring it to the age of this totally electronic marketplace." - Kim Bang (Tweet) About Kim’s son’s research club at New York University. How he decided what to do next after his company was sold. "We came up with something that we believe has better traction than classic trend following." - Kim Bang (Tweet) How he launched Prolific Capital Markets in 2013. What he does when he’s not working. "Taking some time off to clear your mind and do some exercise is an important thing to do." - Kim Bang (Tweet) How he built his business. The funds needed to start his business and how institutional clients should be sought after. What he can do himself and what he has outsourced. How he builds a strong culture in his organization. What his track record means to his potential investors. What Kim is trying to achieve with the program itself. What kind of environments are good for his program. "We want our models to work across a wide set of markets." - Kim Bang (Tweet) Resources & Links Mentioned in this Episode: Learn more about Kim Bang here. Dive into information about Bloomberg here. This episode was sponsored by Swiss Financial Services: Connect with Prolific Capital Markets: E-Mail Prolific Capital Markets : kbang@prolific-capital.com Follow Kim Bang on Linkedin "The advantage we have is that we are smaller and more agile." - Kim Bang (Tweet)

"It’s 70 percent losing trades, a bit like a trend follower." - Barnaby Cardwell (Tweet) In the second part of our conversation with Barnaby Cardwell, we dive into the details of his program, how he built his company, and what he thinks it takes to be a good manager of a trading firm. Thanks for listening and please welcome back our guest Barnaby Cardwell. Subscribe on: In This Episode, You'll Learn: What indicators Barnaby considers more reliable. How he gets into a trade. "It’s not good if we come up with a new system and it’s correlated to existing systems." - Barnaby Cardwell (Tweet) How important is the position sizing? How much AUM his model can handle. Risk management: how he defines risk and what he does to mitigate it. What he has learned from drawdowns. "We learned that what we put in place works, don’t deviate from it." - Barnaby Cardwell (Tweet) What keeps Barnaby awake at night. "We’re quite strict on risk. So I sleep alright." - Barnaby Cardwell (Tweet) Trading spread between markets and the research his firm is doing into that space. Why he focuses on the managed-account route. How he stands out from the crowd to attract investors. "I think we picked up a lot of credibility by trading our own money. We’ve never had a bank’s balance sheet to keep us having a salary." - Barnaby Cardwell (Tweet) About “key-man” risk. What potential investors don’t ask in their due diligence questions. What it takes to be a great trader. "Be very patient, and pick your trades. The problem is, traders put on boredom trades." - Barnaby Cardwell (Tweet) What books have inspired him in trading and life. What his biggest failure is so far. Resources & Links Mentioned in this Episode: People that have inspired Barnaby include James Harris Simons, QIM, and the book Trading in the Zone. This episode was sponsored by Swiss Financial Services: Connect with Cardwell Investment Technologies: Visit the Website: www.c-i-technologies.com Learn more about Cardwell Investment Technologies on LinkedIn Follow Barnaby Cardwell on Linkedin "I make an effort not associating the size of the trade or the loss with money equivalents in real life." - Barnaby Cardwell (Tweet)

"I never really wanted to be a manager - the idea that you could compete against everybody else and make money was just brilliant." - Barnaby Cardwell (Tweet) Our next guest is a fund manager in the short-term space, and thus is distinct from many of the guests on this podcast. He discusses how he got into the financial markets from a young age, and why he decided to trade in the short term space in order to separate himself from the competition. Listen in for details into his program and how he started his hedge fund. Thanks for listening and please welcome Barnaby Cardwell. Subscribe on: In This Episode, You'll Learn: How Barnaby grew up and what got him interested in the financial markets. "One of the first books I read was Market Wizards - at about age 20." - Barnaby Cardwell (Tweet) Why he left being a broker and went in to a more systematic approach. How he met his future business partner. How they started his fund in late 2008. What it was about the Market Wizards books that captured his imagination. What he does to compete outside of trading. His first mentor and what he taught Barnaby. Why he decided to go short term. "It’s very hard to distinguish ourselves in the long-term timeframe." - Barnaby Cardwell (Tweet) How automation has changed his industry. How he gets through the hard times in the market. "If you know you’re system is correct, you know when the market moves happen you’re going to make money." - Barnaby Cardwell (Tweet) An overview of the program that his company runs. How he set up his company and attracted investors. The challenges that let to auto-execution of trades. "I wouldn’t say our model has evolved too much." - Barnaby Cardwell (Tweet) How he builds a strong culture in an organization. How he wants people to look at his track record. Why he uses time-based stops. "We’re trying to deliver market movement on short-term timeframes." - Barnaby Cardwell (Tweet) The details of the short term models he uses. How he creates a strategy. Resources & Links Mentioned in this Episode: Learn more about Market Wizards and Jack Schwager. Check out information on Toby Crabel and his book. This episode was sponsored by Swiss Financial Services: Connect with Cardwell Investment Technologies: Visit the Website: www.c-i-technologies.com Learn more about Cardwell Investment Technologies on LinkedIn Follow Barnaby Cardwell on Linkedin "We want to trade across as many markets as possible - that’s how we know a system is robust." - Barnaby Cardwell (Tweet)

"When disappointment rises drastically and excitement rises drastically, that’s what we call a volatile time." - Mahendra Sharma (Tweet) In this second episode with Mahendra, he dives into his predictions for 2015 and the next few years, detailing his thoughts on markets from currencies, gold and silver to oil and real estate markets. He discusses how he sees key geo-political events resolving or worsening in the years to come. You may gain advice and insight that will change how you trade and what you trade in the financial markets! Please welcome our guest, Mahendra Sharma. And thanks for listening. Subscribe on: In This Episode, You'll Learn: The drastic rise in volatility Mahendra is expecting for this year and next. What he thinks about where Oil is going to go. What happens when his predictions come true very quickly. His predictions and success with the gold market and the 52-year era for gold. "After 2052, it will mark death for gold." - Mahendra Sharma (Tweet) What he thinks about Copper and Silver. What he sees for the major currencies going forward. "Clearly, in the last two years, the dollar has gained against each and every currency. In 2015 the volatility will remain in the currency markets." - Mahendra Sharma (Tweet) How Mahendra sees the future of the European Union and their currency. "My view is that in 10 years time, the Euro will be half the value of the dollar." - Mahendra Sharma (Tweet) What he predicts that does not pertain to the financial markets. Why he stopped predicting events that were not in the financial market. "I believe in incidents, coincidence, and circumstances." - Mahendra Sharma (Tweet) What he thinks about the real estate markets for the coming years. "The real estate market will do very well in the second half of 2015." - Mahendra Sharma (Tweet) The problems he sees coming from 2017 onwards. What he predicts for the banking stocks in 2015. How nature influences humans. "The planets can guide us and give us a great picture of the future." - Mahendra Sharma (Tweet) Resources & Links Mentioned in this Episode:  Learn more about Mahendra here. This episode was sponsored by Mahendra Sharma's Financial Predictions: Connect with Financial Astrology: Visit the Website: Mahendra Prophecy Call Financial Astrology: +1 805 - 403 - 4781 E-Mail Financial Astrology: mahendra@mahendraprophecy.com Follow Mahendra Sharma on Linkedin "2018 looks a little bit scary to me." - Mahendra Sharma (Tweet)

"The financial markets are all connected with cycles of time and history." - Mahendra Sharma (Tweet) Welcome to an episode of Top Trader's Unplugged unlike any other. We take a break from interviews with hedge fund managers and invite you into the fascinating world of financial astrology. Mahendra Sharma dedicates his astrology and predictions work exclusively on the financial markets, and has had an astonishing accuracy of predicting market events. Learn about his story, including his upbringing without electricity in his home, on this episode. Thanks for listening and please welcome Mahendra Sharma. Subscribe on: In This Episode, You'll Learn: Why Mahendra is completely different than any of the other guests that have been on the podcast. How he got into predicting the financial markets. "Oh wow - I want to learn how to see the future." - Mahendra Sharma (Tweet) The story of his astrologer grandfather who lost his eyesight. How he came out with his first predictions at the age of 20. How he made a fortune in technology stocks based on his own predictions. "I saw the tech bubble, before the tech bubble started." - Mahendra Sharma (Tweet) The way he wrote his first book that came out in South Africa. How he grew up in a home without electricity. "Each person on this planet has a unique quality in their life." - Mahendra Sharma (Tweet) Why he looks at planetary movement, and human behavior patterns. When he thinks Facebook is going to be worth nothing. "Traders and investors are experiencing very volatile times." - Mahendra Sharma (Tweet) Why he predicts that the DOW will go to 32,000. Why he believe in a 30 year cycle. "I see inflation coming back in 2016 and 2017." - Mahendra Sharma (Tweet) What he predicts for interest rates in the next few years. Resources & Links Mentioned in this Episode:  Learn more about Mahendra here. This episode was sponsored by Mahendra Sharma's Financial Predictions: Connect with Financial Astrology: Visit the Website: Mahendra Prophecy Call Financial Astrology: +1 805 - 403 - 4781 E-Mail Financial Astrology: mahendra@mahendraprophecy.com Follow Mahendra Sharma on Linkedin "I think interest rates are going to see a very amazing trend in 2015 and 2016." - Mahendra Sharma (Tweet)

"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. Subscribe on: 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: Technical Analysis of the Financial Markets by John Murphy Market Wizards by Jack Schwager Trend Following by Michael Covel This episode was sponsored by Swiss Financial Services: Connect with Shell Capital Management: Visit the Website: www.asymmetrymanagedaccounts.com 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)

"It’s not about trying to make all the trades a winner - it's about having the average win be much greater than the average loss - and that is asymmetry." - Mike Shell (Tweet) Most trend following firms have clients that invest somewhere between 2 and 20% of their portfolio with that firm, but Mike Shell's firm is different. His strategy is tailored to a specific customer, and almost all of his clients have their entire investment portfolios with his firm. We dive into the specifics of Shell Capital Management in this episode, and how Mike grew up in the southern United States with a military background to become the owner of his own firm. Thanks for listening and please welcome our guest Mike Shell. Subscribe on: In This Episode, You'll Learn: The ways that Mike’s firm is different from other firms. His upbringing in Tennessee. How he started Shell Capital in 2004. The books that influenced him in his trend following education. What his experience was in the brokerage world. "You have to start somewhere - even some of the greatest traders in the world started the same way." - Mike Shell (Tweet) Why he left the brokerage world and what gave him the courage to become an entrepreneur. His experience in the military and law enforcement. What he does when he’s not trading. "I create systems for everything - everything we do is some sort of system. That’s my passion." - Mike Shell (Tweet) Why symmetry is the last thing he wants when it comes to investing. How his asymmetry term came about. Why he relishes uncertainty. "Change and uncertainty, the thing that a lot of people fear, is actually what leads to happiness." - Mike Shell (Tweet) How he structures his firm to compete in his industry. How the firm plans to grow and what they outsource. "We are completely and utterly focused on this one thing that we do." - Mike Shell (Tweet) The way that people should interpret his track record. Resources & Links Mentioned in this Episode: "I read 'How to Make Money In Stocks' in the early 90s and that got me interested in trading." - Mike Shell (Tweet) Books that Mike was influenced by: How to Make Money in Stocks Market Wizards This episode was sponsored by Swiss Financial Services: Connect with Shell Capital Management: Visit the Website: www.asymmetrymanagedaccounts.com E-Mail Shell Capital Management here. Follow Mike Shell on Linkedin "An algorithm is a big scary word to people, but it’s just a decision tree." - Mike Shell (Tweet)

"Investors confuse trend following strategies with long volatility strategies, which is really not the case." - Marc Malek (Tweet) In this year-end review, Marc Malek explains why intervention in the markets affects trend following, but also why trend following strategies are not long volatility strategies. He discusses 2014 from the point of view of his firm, how his program did, and why he is excited about 2015. Thanks for listening and please welcome back Marc Malek. Subscribe on: In This Episode, You'll Learn: How 2014 treated Conquest Capital. How volatility shows itself in a market like oil. What strategies performed well and what markets contributed to their success. How he prepares himself for extreme volatility and how he dealt with the Swiss Franc move. What intervention does to the markets. "Correlation amongst asset classes are very different in risk seeking periods than they are in risk averse periods." - Marc Malek (Tweet) How his firm would plan for our react to a big market change such as the break up of the Euro overnight. Why people use correlation in the wrong way. Resources & Links Mentioned in this Episode: Listen to 2 hour-long episodes with Marc Malek on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with Conquest Capital Group: Visit the Website: www.ConquestCG.com Call Conquest Capital Group: +01 212.759.8777 E-Mail Conquest Capital Group: info@conquestcg.com Follow Marc Malek on Linkedin

"The conversations got easier over the latter half of the year, but in no sense are we saying 'see I told you.'" - Martin Lueck (Tweet) This year in review covers how Aspect Capital came out of 2014 with their best year ever as a company, and what they learned from the year. Martin Lueck discusses the events that made 2014 a roller coaster ride, as well as the importance of always staying agnostic in your allocation to different sectors. Thanks for listening and please welcome Martin Lueck. Subscribe on: In This Episode, You'll Learn: Why 2014 was a roller coaster ride for Aspect Capital. How 2014 was the best year ever on record for Martin’s firm. Why CTAs spend most of the time being in a certain level of drawdown and how they have to be psychologically prepared for that. "We are not tilting the portfolio to reflect recent experience." - Martin Lueck (Tweet) What markets didn’t perform for his firm. How Martin reacted to the Swiss Franc move that happened recently. How conversations with investors changed over the year. Why educating investors is important. Resources & Links Mentioned in this Episode: Hear more of Martin Lueck in these 2 hour-long conversations with him on our podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with Aspect Capital: Visit the Website: www.aspectcapital.com Call Aspect Capital: + 44 20 7170 9700 E-Mail Aspect Capital: info@aspectcapital.com Follow Aspect Capital on Linkedin

"We learn all the time. I’ve continued to learn over the last few decades. You learn it’s never time to do a touchdown dance." - Mike Dever (Tweet) On our next year-in-review, Mike Dever talks about how 2014 evolved for his firm and what they learned from the year. He discusses the changes they made to their program as well as the recent Swiss Franc move and what they learned from that. He also talks about why investors need to keep the long term view in mind when investing, and not re-evaluate the program every time the profits take a dip. Thanks for listening and please welcome our guest Mike Dever. Subscribe on: In This Episode, You'll Learn: What Mike’s firm does that blends together different strategies in order to diversify a portfolio. How 2014 was for his firm. Why they had a great first quarter to 2014 when most CTAs did not. How the Interest Rate sector and Agriculture sector did well for the program. Why he saw the Swiss Franc move coming. "The Swiss Franc move, as much as it was unanticipated, still gave some indicators that something was going on." - Mike Dever (Tweet) How they are in a continual process of learning and subsequently improving their program. Convergent vs. Divergent environments and what Mike is looking forward to. How to mitigate a big inflow of investment followed by immediate outflow. The book that Mike wrote and if the Myths still hold true today. Why people think about the long term view when they invest, and think about the day-to-day view when they take their money out. Resources & Links Mentioned in this Episode: Listen to 2 hour-long episodes with Mike Dever on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with Brandywine: Visit the Website: www.brandywine.com Call Brandywine: +1 630 361 1000 E-Mail Mike Directly: Mike@brandywine.com

"This is a long term permanent component in a portfolio that ought not to be considered as a timing device for extracting some additional alpha." - Aref Karim (Tweet) Aref Karim has been on the institutional investing side and the fund manager side for many years, so he has some great insights into how each group thinks and ways they can understand each other better. In this episode, Aref reviews 2014 from the perspective of QCM and discusses the research upgrades that the firm started to their program, and how they dealt with the events of the year, including the recent Swiss Franc move. Thanks for listening and please welcome Aref Karim. Subscribe on: In This Episode, You'll Learn: About the two programs that his firm trades. How 2014 went for Aref and his firm. About the upgrades that the firm started in late 2013. Where their largest gains came from in 2014. The opportunities that no one predicted in 2014. "We’ve had some opportunity costs, and those gave us a chance to see how the simulations would have done." - Aref Karim (Tweet) How they dealt with the Swiss Franc move in early 2015. How institutional investors are looking at the managed futures space as we enter 2015. What 2015 looks like for his firm. Resources & Links Mentioned in this Episode: Listen to 2 hour-long episodes with Aref Karim on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with Quality Capital Management (QCM): Visit the Website: www.QualityCapital.com Call QCM: +44 (0) 1932 33 44 00 E-Mail QCM: marketing@qualitycapital.com Follow QCM on Linkedin  

"A seasoned trader feels happy the moment he enters into a good trade, even if that trade ends up with losses." - Luc van Hof (Tweet) In this year-end review, Luc van Hof discusses what he learned from 2014 and how his firm innovated to create better gains for customers in 2015. He also talks about the Swiss Franc and why he was not trading it when the major move happened in 2015. Thanks for listening and please welcome our guest Luc van Hof. Subscribe on: In This Episode, You'll Learn: The two programs that his firm trades. What kind of risk both of his programs take on. What 2014 taught Luc. What he learned from the Swiss Franc move. Why they didn’t trade the Swiss Franc...on the day of the big move. Why he wishes they could have taken a holiday for 6 months after the end of June. "You have no choice but to be active in the market." - Luc van Hof (Tweet) The advantage of trading frequently. The new innovation that his firm started this year. His thoughts on volatility. Resources & Links Mentioned in this Episode: You can listen to 2 hour-long episodes with Luc van Hof on this podcast here and here. This episode was sponsored by Swiss Financial Services: Connect with Capital Hedge: Visit the Website: www.CapHedge.com E-Mail Capital Hedge: bernhard@caphedge.com Follow Luc Van Hof on Linkedin