Andrew Abraham

andy-0101 My name in Andrew Abraham. I have been investing in commodities and managed futures since 1994. I adhere 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 me apart from other traders is that I am not only concerned about the return on investment but how much risk I will have to tolerate to achieve my goals.

Contact Details

If you are interested in contacting for speaking engagements. Please email me at or call 954 903 0638.

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Risk Warning

Futures and commodity trading involve substantial risk. The evaluations of futures and commodities may fluctuate and as a result, clients may lose more than their original investment. In no event should the content of this website be construed as an express or an implied promise, guarantee or implication by, that you will profit, or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information provided on this website is intended solely for informative purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible, where projections of future conditions are attempted.



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Mechanical Trading Systems

If you look in any commodity or forex publication you will see advertisements for mechanical trading systems. This is an area in which commodity traders as well as forex traders seek to find their holy grail. Well in reality this will not happen with any mechanical trading system on the market. However mechanical trading systems have some very distinct advantages. When a commodity trader uses a systematic mechanical trading approach they greatly increase their odds of success if they can truly follow the signals. Mechanical trading systems remove ones opinions & ego from the daily decision process that must be made. As well mechanical trading systems should reduce the emotional attachments and fears of losing money.

Really what is great about these mechanical trading systems..they automatically generate buy and sell signals based on preprogrammed algorithims. The signals do not take into account if Bernake is speaking or if there was a report in Bloomberg that Jim Rogers thinks corn is under valued. The fact is the mechanical system runs like a robot. The problem comes into play with the commodity trader does not following the signals. I have seen countless times commodity traders start to question their systems at the first sign of a draw down. The reason for this is they have not tested their mechanical trading system or they do not understand how exactly the system works. Another common cause of concern …is that I have seen repeatedly …is the commodity trader or the investor in a commodity trading advisor has not truly accepted the risks inherent in commodity trading.
To be more clear….

I have heard all too many times ..Yes I can go through a 20% draw down. Yes..I know it is part of trading. HOWEVER at a 10% draw down the commodity trader or investor in the commodity trading advisor becomes very uncomfortable.It is very clear to me …they really did not accept the risk. This is one of the keys of successful investing. As much as well all like consistent and reasonable returns with reasonable risk, the fact is the markets are volatile. The fact is your greatest draw down is always ahead of you. This is the reason one needs to fully understand how their mechanical trading system works or what exactly is the methodology and risk management of the commodity trading advisor they would consider investing with.

Mechanical trading systems are a start… but not for the professional commodity trading advisor. They need the platform offered by Mechanica or trading blox. I will discuss these products in another of my posts.

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Andrew Abraham
Futures trading involves risk. People can and do lose money

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