How To Invest in a Commodity Trading Advisor

Commodity Trading & Trend Following

Andrew Abraham is a commodity trading advisor with Angus Jackson Partners. AJP is a professional money management firm seeking to assist clients preserve and grow wealth for themselves and their families. The absolute goal is to manage the risks while investing and let the power of positive compounding occur. Angus Jackson Partners is a Trend Follower utilizing multiple mechanical systems trading under different time frames. Andrew can be reached at A.Abraham@angusjackson.com

Maybe it is human nature… maybe it is a lack of patience or discipline…or the new word courage…why do so many lose money when investing with legendary Commodity trading advisors? I have seen it over and over again. A commodity trading advisor has a good run…and then his assets under management swell. Then the inevitable happens the commodity trading advisor goes through a draw down or even a flat period and the investors jump ship. Assets under management plunge. Many investors lose money doing so. If only they had the discipline to stay with the manager…they could have compounded their money over and over again. Some disciplined commodity trading advisors look at these clients that jumped ship as a trade that did not work. They did not take it personally nor cared. The commodity trading advisors are compounding their own money and fully realize that in order to be in this business, loses will happen, draw downs will happen and investors will only invest with the when they have positive results.
The real key in investing with commodity trading advisors is to fully understand how the manager thinks…manages risk…and how he trades. One should not be full of unrealistic expectations… Nothing has to happen in commodity trading..in fact ..most of the time it does not. We only get these rare huge moves every couple of years.. But successful, disciplined commodity trading advisors make themselves available. They do not give up during a draw down. They keep on going..If you want to be a successful commodity trading investor you will need to also.
Look at this manager.. Yes,Bill Dunn of Dunn Capital Management has some volatile results, he has compounded money since 1974. The results speak for themselves.. on the chart below from 1984 to 2009 approx 25 years on average Bill Dunn generated 14.47%. Putting this in another context… 100k turns into virtually $3,000,000. This is my point. One can compound their way to wealth by diversifying among commodity trading advisors and being patient and disciplined.

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