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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Tinkering with Your Trading Methodology During Draw downs

There is that urge always to try to perfect your trend following system. Some call it optomization while some are more inclined to tinker with their trading systems when they are facing a draw down. The greater the draw down the greater the urge. Traders want certainty and draw downs are the anti thesis of certainty. Draw downs shake our confidence however if one starts tinkering they might start thinking about stop trading. All commodity trading advisors as well as all trading methodologies go through periods that are difficult. If it was not difficult everyone would be trend following. Trend following is not retirement in a box. It takes discipline and patience.

One needs to have the utmost confidence in their methodology or if they invest with a commodity trading advisor, confidence in them. One needs to realize there is no way to avoid draw downs and even steep ones. I personally resist that urge to tinker and realize that my trading methodology has worked for 17 years, that it is not curve fitted, that it is robust and YES…it will have draw downs. I expect draw downs. No one ever could promise me that I will make money every day…or every month..or every year. There are years I do not make money however the following year or years I more than make up for this with double profits. For example in 2009 was actually down some what in one of my methodologies. However in starting in Aug 2010 caught some great trends and was up in 2010 approx 39%. This more than made up for my lackluster 2009.

The key to trend following is money & risk management. Take small bets, make yourself available for trends when they appear, let the markets tell you where they want to go-Not you and temper your expectations & sharpen your discipline.

Bare in mind when you tinker or start changing your methodology when you are in a draw down you are opening a pandora’s box of issues. You really need to trust your methodology or trust your commodity trading advisor. If I see strategy shift in a commodity trading advisor that I have invested with I leave.

Trend following and trading have to be the hardest way to make a living. It is doable though..One needs to look at what their account looks like in 10 or 15 years. This has been the way I have traded and look to keep on trading.

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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