Commodity Trading & Trend Following

First answer is yes ,but it is not easy. In my opinion you need a robust idea and strong money management rules in place. More so you need the proper mindset. From my experience you must able to follow an exact plan or system to make your goals happen. Even with this, the reality is [...]

Risk per Sector When Trend Following
Earlier in my career I had no idea of sector correlation. Only through big drawdowns and losses did I learn the importance of this important rule. When I first began, I would get a signal for to buy or sell in the interest rate sector or the grain sector. [...]

I had this question posed to me last night while meeting a potential institutional investor last night at the MFA. I know that my greatest draw down is always ahead of me as well as I tell investors & potential students there is a draw down out there that might have them stop trading.
It was [...]

I just finished reading an article in Business insider from Joel Greenblatt from his Magic Formula investing. They run managed accounts as well as teach how to run the EXACT methodology. Putting things into perspective Joel Greenblatt is managing partner of Gotham Asset Management. Gotham is an institutional asset manager based in New York City [...]

Too many times we try to make simple things more complicated! There are those that think simple means unsophisticated or not possible to generate money. They are very wrong and the track records going back decades of many trend followers prove them wrong. All one has to do is look at the audited real time [...]

I just returned from a fantastic conference in Miami Beach, The Alphametrix. It was very interesting on many levels. I was able to meet many trend followers face to face as well as I met with many commodity trading advisors that I was interested in investing with. Actually I hope to make an investment in [...]

I am at a fantastic investment conference in Miami Beach this week, the Alphametrix. I am there to find and meet face to face commodity trading advisors I am interested in. I have been trend following my own programs for now 18 years however I feel it is important element to diversify with other commodity [...]

The Equity Curve of the Stock Market with a compound annual rate of return of 0.39% over 10 years does not seem to be a way to compound money over long periods of time.

Compare this with trend following. Trend followers and commodity trading advisors go through draw downs and long periods in which they [...]

Stanley Haar gave a great interview on Fox news regarding the MF Global debacle. Want to thank Stanley for all of his great efforts!
It is more than about time the truth comes out and all clients of MF Global get our money back. This is a disgrace that this has been allowed to occur in [...]

The only certainty in trend following is uncertainty. You never know which trades which work and the reality is that most trades do not work. Due to the fact that most trades do not work, you need to strongly focus on risk management. My goal is not to sugar coat or make you think it [...]