My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I am a commodity trading advisor/co manager of a commodity pool who adheres to the philosophy of trend following.
Trend following stresses a disciplined approach to commodity/ futures trading. Successful trend following and commodity futures investing requires patience, discipline and actively managing the risk. What sets us apart from other Commodity trading advisors and commodity pools is that we are not only concerned about the return on investment but how much risk you will have to tolerate to achieve your goals.
Examples of Trend Following in Commodity Futures Trading 2009
So far the year of 2009 has not been the best for commodity trading advisors and trend followers in the commodity futures markets.
Wanted to share with you 3 of this years winners. In Trendfollowing you have 3 things happen..small losses.. ( and there have been plenty of those.), small profits and an occasional nice big profit. Trend followers and commodity trading advisors who stick to their discipline avoid the big draw downs or losses… Look at these 3 examples of trend following in the commodity futures markets.
First our larger open profit is LH
Trade was entered on 4.27.09 You will notice how the market is trending. When the trade was put on, had no idea if it would work or not. This is the exact reason to have discipline and follow your trading system when commodity futures trading. Open current profit $8630 based on a 1% risk of account.
Next is ED. Entered on 3.18.09 based on a 1% of account open trade equity $5344
Next is Corn which is a short entered on 6.15.09. Open trade equity with a 1% risk of account $3788.
These are examples of trades working… These are probably approx 30% of all trades that are put on. Most trades do not work or have small profits. However the trades that work offset the trades that don’t. You need to put yourself in a position of making yourself available for profit…but with a strong thought out risk management plan.
Andy Abraham
www.myinvestorsplace.com
Futures and commodity trading involve substantial risk.People can and do lose money trading.
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Excellent post and I enjoy your site. I am still in the ED & C trade as my trading system has instructed. A few other good examples of this year would be Soybeans/Soybean meal, copper, most equity indexes, and dollar index. Trend following has suffered as whole this year because of the reversals of last year’s huge trends which was to be expected. I don’t want to make any predictions, but it seems like many markets are at an inflection point, at least according to my TF models. It seems like we’re about to test the recurrence of the deflation trade. Not that it really matters what I think. It all boils down to a simple concept: The market WAS and IS; not WILL BE. The future can’t be foretold no matter how hard we try.