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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Risk Per Sector When Trading for a Living & Trend Following

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 would buy 5 year bonds, 10 year bonds, 30 year bonds, Gilts, Bunds and name it. The same could occur in the grains. I would buy soybeans, bean oil, bean meal, corn and wheat.

What actually happened to me was there were times these trades worked well but when they didn’t it was a disaster. Even though I thought I was taking low risk trades with small percentage risks of my account size, these trades were heavily correlated and I was not taking a low risk bet.

I woke up some mornings and all of these trades went against me and I faced a heavy draw down. What I learned from these incidents was to cap my sector risk. Today as part of my risk plan is that I will only allocate 5% of my total portfolio to any sector. Any sector means any stock sector such as tech, retail etc or in the commodities interest rates, energies, grains, metals etc. Putting it clear terms if my total account size were $100,000 I would have total number of positions exceeding a risk of 5% or $5,000 in that particular sector.

Personally, I am not only concerned about the return on investment but how much risk I will have to tolerate to achieve my goals. I know I have no guarantee I will achieve my goals.

You will always have losses and draw downs. Our job as trend followers is try to mitigate the inherent risks in the market. I say ” Try”! There are many parameters I use in my daily trading, however nothing is perfect and there will be losses and long periods you will not make money. This is the reality. Trend following is not a get rich quick nor sugar coating. Trend following is not for everyone. Most importantly do not even consider trend following if you do not have a well thought out plan with all contingencies for risk in place.

You have 2 choices; you can do what I did and work for 18 years trying to learn to develop a consistent money making strategy or you can read my material, having me available to help you and skip the almost 2 decades of a learning curve that I did.

I will be very shortly teaching students exactly how I trade for a living. It is not the Holy Grail as it does not exist. You will learn how to think like a trend follower as well as I will give you the exact methodologies in which I trade. If you want to learn how to trade for a living, I invite you to be one of my students.

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

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