I first interviewed Mike at CWTNYC, in May 2017. The 100-listeners (give or take) who attended, will already be very familiar with Mike and there may be a few moments of déjà vu throughout this episode. But for everyone else…
Mike came into trading around 20-years ago, beginning at Chicago prop firm, TransMarket Group, where he ultimately spent 12-years of his career. Over the course of his time there, Mike became one of their largest 30-year Treasury basis traders, both in terms of volume and performance.
Now days, Mike is trading a relative value strategy through his own book, and building out a track record with the aim to launch a hedge fund in the coming years…
Topics of discussion:
- Mike’s progression from phone clerk to proprietary trader, lessons learned from mentors and growing a capital base, and the influence of Ray Cahnman.
- What you gain from having skin in the game, how Mike increased his tolerance for greater risk and his rule of thumb for avoiding the loss of too much money.
- A primer on trading Treasury bonds; major participants, barriers to entry, economic influences, characteristics of different maturity terms and more.
- From a high level, Mike explains his relative value strategy and the various relationships he tracks. And lastly, why you must take care of the short term!
Links and resources mentioned:
- @MAgne1313 [Twitter]
- Subscribe to Mike’s newsletter [Capital Trading Group]
- Understanding Treasury Futures [CME Group]
- Ray Cahnman photo [Getty Images]
- Nell Sloane [Episode 127]
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