006 - Art Holly - Who Needs to Back-Test?

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An Incredible Track Record Speaks Volumes

Learn from the best & make it even better! Another fascinating show with Art Holly who has decades of quant trading wisdom on offer.

Art has a rich experience as a Portfolio Manager but also as an Allocator and brings over 30 years of incredible experience to the table. His strategies are best in class, diversified across instruments, time-frames and methodologies. He's an outlier hunter seeking positive skew. He doesn't want to warehouse risk, and he incorporates fundamental data & market profile in his algorithms in a very unique fashion. His all-weather portfolio has truly stood the test of time and he shares his philosophy, his 4 strategies, his 'logic-first' mentality and so much more. When you've been doing this from the early days, who needs to back-test?

Discovering Market Profile at UBS

Art began his journey in finance at Union Bank of Switzerland in the 1980s, where he first encountered Market Profile. This innovative approach to trading, focusing on price, time, and volume, fundamentally changed his perspective on market dynamics. Art vividly recalled his first experience on the trading floor, a moment that solidified his connection to the world of trading.

Mentorship and Philosophical Growth

Throughout his career, Art was deeply influenced by mentors like Van Tharp and Ed Seykota. He shared stories of their mentorship, emphasizing the critical importance of risk management, position sizing, and the psychological elements of trading. These experiences shaped his approach to trading, underlining the significance of emotional discipline in the field.

Evolving Trading Strategies

Art's evolution of trading strategies was a major focus of the episode. He detailed the development of his methods, a blend of long-term trend following and short-term models, and his unique approach to short selling. His strategies demonstrated a sophisticated balance of risk and reward.

Challenges in Attracting AUM

A significant part of the conversation centred around Art's challenges in attracting assets under management (AUM) for his fund. He discussed the competitive nature of the industry and the difficulties in standing out in a crowded market. This part of the discussion highlighted the harsh realities and complexities of managing a hedge fund in today's financial landscape.

Adapting to Market Changes and Allocator Role

Art's role as an allocator, where he analysed and selected funds for investment, provided him with a broad perspective on market dynamics. He spoke about the importance of adapting trading strategies to changing market conditions, emphasizing the need for agility and responsiveness in trading.

Conclusion: Wisdom and Adaptability

Art reflected on his career, emphasizing the cyclical nature of market behaviours and the value of historical market wisdom. His story is a testament to the combination of experience, systematic analysis, and adaptability, crucial for success in the dynamic world of finance.

This episode of "The Algorithmic Advantage" with Art offered not just a recounting of his professional journey but a rich source of insights, experiences, and wisdom for anyone interested in the complexities of trading.

Get in touch with Art:

x: https://x.com/artjholly3

li: www.linkedin.com/in/art-holly