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 Andrabr9@gmail.com 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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How to Chose a Commodity Trading Advisor

I have been investing with Commodity trading advisors and trend following my own accounts for the last 17 years. I will detail how I chose the commodity trading advisors that I work with. I allocate to commodity trading advisors to smooth out my own trading returns. I trade two strategies. One slightly more aggressive and one less aggressive. I allocate no more than 2-3% of my net worth to any idea. What seems to happen year in and year out that some managers out preform (as well as my own trading in out performing and under performing) and some managers under preform. However putting them all together I get some what of a smoother equity curve. Building my equity curve and compounding my money is my sole goal as far as trading. No ego..No predictions..No big losses. Grind it out year in and year out and compound my money. Build an equity curve with an ever increasing right angle.
I allocated to one manager who at years end should be close to a 40% return. I have another in which I bought his draw down and did not fund fully I have approx a 56% return. My own trading was in one account in the mid 30% and my less aggressive around the 10% range. I have managers that made in the teens as well as some made in the low single digits.

The above mentioned why I allocate to commodity trading advisors other than my own trading. Now I will detail how I chose who I want to invest with. As I have been involved for the last 17 years investing, I know who are the long term players and survivors. As well I look for new managers that understand risk and have hunger to succeed. I do not just look at the results. Most importantly is how did they achieve their results. How much risk did they have to take on to generate those returns. Risk works both ways and one of the most major tenants of my trading is not to lose capital as capital is inventory for my compounding. I try to meet the managers at conferences or if that is not possible discuss at length how they measure and address risk. I am not overly concerned what gets them into a trade because any trade is 50/50. The most important is the risk as well as the patience & discipline to follow their methodology. Long time managers have it in grained in their psyche that this is a lifetime strategy and that there is never a question regarding their lack of discipline.

I look at risk per trade…risk per sector..open trade risk…max total positions as well as margin to equity. These questions give me a good handle as far as the manager addresses risk. During periods of eventual draw downs I look to allocate to commodity trading advisors. I do not buy their highs and sell their lows (a joke that I have heard often). I want to buy managers who understand risk and are now going through a temporary draw down (I have seen draw downs of 2 years at times). Trading commodities and trend following is not easy in any sense of the word. You need an exact plan and most importantly the patience, time and discipline to see the plan through. This thinking is contrary to those who only think to invest in the stock market. Trading a basket of commodities ( virtually all products we use in our lives) gives trend following the potential to generate profits. The last 10 years in the US stock did not provide any positive returns and if one looks at the Nasdaq the situation is horrid. Even worse is the Japanese Stock market still down from 39,000 in 1989.

Make yourself available when there are chances to profit. Temper your expectations…manage the risks..These are the keys to successful trend following and investing with commodity trading advisors.

Futures trading involves risk. People can and do lose money


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