Click here to access this week's Big Saturday Interview: System Trading and Sanity Testing with Trader Michael Boyd.
Michael Boyd is a senior equity and options trader who specializes in quantitative strategies. He has worked for market makers as well as on the NYSE floor and was among the first traders to help create and use trading algorithms.
In Part One of our conversation with Mike Boyd, we discuss his entry into the trading world back in the early 1990s, right before the beginning of the technology boom, and how the financial crises in 1997 and 1998 helped him develop a healthy respect for quantitative analysis - and caution in the face of its short-comings.
Bringing those lessons to the present, Mike Boyd reminds us that "a computer won't understand if Chrysler is going to declare bankruptcy," and that even the best systematic trading approaches require both discipline and discretion in order to be successful.
Part Two of System Trading and Sanity Testing with Trader Michael Boyd will be published next week, and will discuss his thoughts on the markets in the wake of the financial crisis and what traders need to think about when it comes to a new era of public intervention in the economy.
