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.

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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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Whipsaws in Trend Following

Is the cup half full or half empty. I always say half full, be an optimist. Whipsaws in trend following are as certain as the sun coming up. Many traders get upset and angry but once you learn it is all part of it, it really does not matter. Yesterday we saw some huge moves in the grains. Just the day before I had a signal to exit my wheat trade and low and behold instead of enjoying yesterdays move up I had a small loss half of 1% ( BTW I think in terms of percentages as a pose to money). The same with corn. I was taken out of corn the other day with a small loss and yesterday my methodology bought corn “AGAIN”. We have to follow our methodology. Firstly wheat or corn could have imploded and my thank GD small loss could have morphed into a HUGE loss. Conversely I gladly took my new corn trade because if it moves up to who knows what level ($800) I am there for the ride. The good part of this was I still had my trades of soybean oil and soybean meal. The idea of whipsaws underline the fact that I nor anyone know the future. We just have to keep on putting them on and waiting to see what will happen. Small losses are fine. They are expected and even appreciated. The large losses I prevent with stop loss orders immediately placed upon entry (however I can & expect at one point to get hit with limit up or limit down in which it will be hard to exit).

This is what trend following is. Because you put on a trade it does not mean it has to work. To the contrary I know that most of my trades do not work but will have tiny small losses that are eventually overcome by some big winners. I have seen it over and over again. Whipsaws are part of trend following. If you can not stand the whipsaws or accept the risk you should consider trend following as a strategy. It took me a long time to get the right outlook on trend following. With the correct outlook I am able to be patient, disciplined and have the ability to build my net worth over time.

Futures trading involves risk. People can and do lose money

Andy Abraham

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