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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How to Trend Follow with Protective stops

I want to share an email exchange I had with a trader seeking the answer how to place his stops…I am sure all of you reading Trend Following Mentor Blog will benefit from this…

Andy,

During a previous conversation, you mentioned that you removed yourself from DDD on the day it had its 11% drawdown. This led me to believe that you use some sort of intraday stop, such as 2% below previous days close. If you would have waited till it closed below your TTT, you would have gotten out the following day. Do you believe in using an intraday stop to prevent large moves against you during the day? I was in TGH today, which is an example that is similar to DDD. If I was using your TTT, I would have been in all today and exited tomorrow.

My response…

Hello XXXX,
I run various models……I have one that trades on open…as well as others that have trailing stops…if they are hit intraday …that happens….There is nothing perfect. There will be times…TTT would have hit your trailing stop but not activated because it touched it and bounced….You just need to be consistent…risk an amount that for any trade you do not care about the loss. Otherwise you will find it hard to be consistent… For example I am risking .5 basis points..so on any trade for one model…I am willing to lose $500. I accept this ahead of time that I can and will lose this…and at times more…

There is no way to avoid big fluctations…for example yesterday I had an open order for KORS..it gapped up huge…and was a bigger risk than I was happy with…but that is life..

I hope this helps.

Best

Andy

The reality is you can not avoid Losses…Trying to avoid losses will only cause bigger losses. The key is to only risk to your sleep level. Risk to a point that any trade does not cause you any mental anguish. Just put them on as per your trading plan. There is no need to even watch the screen after you have placed your trades and have your stops in place. They will do whatever they want. You can not wish the shares to go any higher. Do not waste your energy. Focus your energy on having a complete trading plan….
What to buy..or sell
How much to buy or sell
When to get out with a profit or a loss….

This is it…The rest of it is simply probabilities. You must have a robust trading plan with positive expectancy using position sizing.

Past Performance is not indicative of future performance


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