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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Correlations in Sectors in Trend Following

There are days like yesterday that it seems none of the trades work ( You will have these days when you are trend following). Yesterday in particular the grains expressed extreme weakness. Prior to this the grains had been trending strongly. Wheat for instance started trending up since the summer starting at 450. Currently wheat is trading at 847. This has been a big move…however yesterday across the grains there was extreme weakness. This brings me to the point that one needs to be very aware of how much risk one takes per sector. If one does not take this into account one exposes oneself to additional risks when allocating too much to any sector. In my trading I allocate a maximum risk of 5% to any sector. This to some degrees mitigates some of the volatility in my account. I will not take any new trades in any sector if more than 5% of my account is at risk.

There are always risks and draw downs when trend following. Our job is to try our best to manage the risk. By limiting the maximum exposure to 5% to any sector this assists but in trend following we will surely have losses and draw downs.

That is the bad news..or the true news… the other true news…if you have the patience,discipline and the mental fortitude to get over days like yesterday you put yourself in a position to compound your way to wealth. On average many commodity trading advisors have compounded money in the range of 15%. This means that your $100,000 dollars or $1,000,000 dollars in 10 years is worth $400,000 or $4,000,000…In 15 years it could be worth $800,000 or $8,000,000. This is the power of compounding. You need to realize that you are doing this for the long term. Any day..Any month…Any year means nothing… Your goal is to compound money.

Trend following really is easy….however it is one of the hardest things to do. It is not retirement in a box. It is not that you allocate to a commodity trading advisor or trade a program and you go to the beach. You will go through ugly periods…and lo and behold when you least expect them and when most people give up you enter into periods of strong trends and profits.

This is the reality of trend following.

Futures trading involves risk. People can and do lose money

Andrew Abraham
Myinvestorsplace.com


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