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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Buying Draw Downs of Commodity Trading Advisors

In theory it seems a valid process to buy when a long term commodity trading advisor experiences a draw down. It is as if you are buying on sale an exceptional product. In the real world however you never know how long or how much further the draw down will continue. At times it can be almost Murphys law. I have been on both sides of the table. I entered one long time trend following commodity trading advisor who had a draw down approximately half of his greatest draw down. His greatest draw down was ( so far..your biggest draw down is always ahead of you) approx 26%. I entered in at a 16% draw down. To my good fortune after I entered I was lucky the following month he returned 19%. I ended up so far up approx 53% from my entry several months short of 2 years.

However this is where the patience and discipline needs to come in. Just the exact opposite has occurred with buying the draw down in another program. Prior to his greatest draw down which was approx 27%…he experienced a gut wrenching 41.51% draw down. I entered and low and behold as I was entering that month he generated a 22% return. When I enter a new allocation to a commodity trading advisor I only take his new positions. These old positions kicked and returned in one month 22%. I missed it…

However I am still trending water and have not generated a positive return yet. I was debating to allocate to the commodity trading advisor I did allocate to or another one. Again Mr. Murphy Law stepped in and if I had chosen the other commodity trading advisor I would have out performed. However in reality it does not matter as when I allocate I look to invest for at least 5 years to 10 years.

The point I would like to present is that buying draw downs is an advantageous way to invest…however rebounds do not occur when we would want them…and it takes patience & discipline to grind out positive returns. It is not retirement in a box.

Past performance is not indicative of future performance
Futures trading involves risk. People can and do lose money

Andrew Abraham

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