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 or call 954 903 0638.

Books Worth Reading

Sponsored Listings

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.



Trend Following CTA abraham investment management
Binary Options
Learn Forex Trading Online
Get a grip on forex trading with this free online course.
Tax Software

Taking Every Trade with Mechanical Systems

Taking Every Trade with Mechanical Systems

Mechanical systems are used widely in trend following and commodity trading. These mechanical systems need to be simple and robust in design otherwise they will not work. The only way potentially profits can be garnished when using mechanical systems is to follow every signal. One does not have the luxury of picking and choosing which signals to take. This goes back to the idea of not knowing the future. Since you do not know the future you must take every signal. Admittedly over the years there have been countless trades I really would not have liked to have taken. However what reinforced my thinking was the simple thought that I do not know the future. Humbly I said to myself my opinions do not mean anything. More so I said to myself how much is this going to cost me to see if it will work. As I only take low risk trades and my max risk to around the 1% range it would not cost me a lot to see what happens. Thinking in this manner is what got me through the idea of picking and choosing trades.

Picking & choosing trades leads just to two outcomes, loss of profits and tremendous aggravation.

Even recently I had one of those UGH trades. I was skiing with my son in France in February. There was a huge move up in crude due to the unrest in the Middle East and I got a signal to buy crude. It was still less than a 1% risk and my colleagues who trade my systems know that neither I nor they can negate a valid signal so crude was purchased. This trade so far as worked. This would not have been a trade I would have liked to take. Buying into the news and a big move up. Regardless! Another example of a different outcome was with the Japanese Yen. In mid March the Yen took out a triple top and was a multi year breakout. This type of trade I like. I took the trade as I take every trade and the trade took off almost to 130. As much as it took off…it crashed..I took my small loss and waited for the next signal.

Proof of the pudding trades that I would have liked did not work and ones that I did not like did work. This is why I know never to pick and choose my trades. If it is a valid signal as per my rules of my trading methodology then I must take it. I know I do not know the future. I know that my opinions do not mean anything. I know that no one knows anything more than me. I know that my methodology over time should continue to extract profits out of the market. I know that I will go through ugly gut wrenching draw downs (maybe not that gut wrenching) but eventually….I will hit new equity peaks. This is what trend following is. There are long periods nothing happens. You can look at numerous successful Commodity trading advisors and see for rolling 2 year periods they did not make any money. However when you least expect it…they stumble into some great trades and compound their way to wealth.

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

Andrew Abraham

Be Sociable, Share!
Add This! Blinkbits Blinklist Blogmarks BlogMemes BlueDot BlogLines co.mments Connotea Digg Diigo DZone Facebook FeedMeLinks Fleck Furl Google Google Reader IndianPad Leonaut LinkaGoGo Linkarena Linkter Magnolia Mister Wong MyShare MyStuff Yahoo! MyWeb Netscape Netvouz Newsgator Newsvine RawSugar reddit Rojo Segnalo Shadows Simpy SlashDot Smarking Sphere Spurl Startaid StumbleUpon TailRank Technorati ThisNext Plugin by

Leave a Reply




You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>