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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Win Loss Ratios

Too many traders get hung up on having to have winning trades. Trend followers realize that most of their trades do not work. Successful trend followers do not care to have these numerous trades that do not work. They know they will make money over time and losing trades are just part of trend following. Trend followers do not know which market will be profitable or even when their accounts will be profitable. However trend followers are confident over time they will hit new equity highs and will overcome these small losing trades. The key is to keep these losing trades small. I do not risk more than 1.25% of my total account size on any one particular trade on one methodology and on another methodology I risk only .75% of 1% of my total account size on any one particular trade. To quantify this for example if you are running a $200,000 account should not risk more than approx $2,000 on any one trade. Realize that most trades will not work and these $2,000 add up and can cause extended losses. Put it in this context, it is not unthinkable that you can have 8 trades in a row that do not work. This equals $16,000 or a 8% draw down. You can even have more. Your greatest draw down is always ahead of you or even worse the duration of the draw down. Many long term trend followers have had in their careers draw downs even in the 30% range or greater. There will always be draw downs. Draw downs are like breathing. You will always have them. This is why you need to make sure you are not risking too much on any trade. As you can see these are small risks on a per trade basis but this does not guarantee you any success. All you can try to do is mitigate the sure draw downs. I can have numerous trades that do not work and I am not impaired from a trading standpoint or a mental aspect. It is just the price of trend following. When trend following most trades do not work.

The above mentioned facts negate the axiom that high win loss ratios are keys to success. The key is to avoid the big draw downs and be available for those rare big winners. Last year the profits were made from the trends in cotton, silver and sugar. We never know which markets will trend. We make ourselves available for trades and look to mitigate the draw downs as best as possible. It is not easy. Trend following is a marathon that requires patience and discipline.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THE RISK OF LOSS IN TRADING COMMODITY FUTURES, OPTIONS, AND FOREIGN EXCHANGE (”FOREX”) IS SUBSTANTIAL

Andrew Abraham
Myinvestorsplace.com
Abrahamcta.com


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