May's Flash Crash didn't cause any panic at Conquest Capital. In fact, they generated almost a twelve percent return for their investors during the month, and were positioned ahead of the volatility to benefit from it. The company's approach is 'systematic with a discretionary overlay' and integrates 'accumulated experience and knowledge' into strategy and model development rather than to make wholesale changes in response to market movements. With short-term strategies trading the most liquid markets, Conquest aims to 'capture different idiosyncratic market behaviours'.
So we've got two big questions to ask. First, we want to know more about the kind of experience and knowledge that keeps the numbers positive even in interesting times, and secondly, we want to know what constitutes a profitably 'idiosyncratic' market behaviour - and how to spot it in advance. For this month's interview, we brought together former Brevan Howard COO, Mike Khorrami, now a Partner at Kiski Group, and Marc H Malek, Managing Partner, Conquest Capital Group, to discuss Conquest's approach to systematic trading, trendfollowing, codified position management and supervised automation. Two initial questions - many answers.