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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Buying Draw downs when Trend Following

There are those who invest with CTAs when they have good runs. These investors buy the highs and many times sell the first draw down. You can never avoid losses and draw downs. I look to take advantage of these inevitable draw downs when trend following. I look to buy draw downs of CTAs as well as my own systems during rough times. There are always tough periods and ugly draw downs.

Like Tom Basso from Trendstat stated ” Buy CTAs when they are on sale”. As much as past performance is not indicative of future performance I have done this for years. You never catch the bottom and there is never a guarantee that there will be a recovery. In Oct of last year after a system I follow experienced an ugly draw down I started to trade it. I put on all the positions so I was in sync with the program. Today I just exited when I hit the prior equity high.

You will notice I did not buy the bottom and experienced a further draw down. From Oct 27 2012 till today 4.16.2013 the prior equity peak was hit. I exited this morning and went to cash on this system. Bear in mind every system and every manager will have draw downs. You might make less money in the long run however potentially this “might” avoid bigger draw downs…. However anything can happen when trend following and past performance is not indicative of future performance. My approach is far from perfect as we are only dealing with uncertainty. However I believe this approach is preferable to buying when a CTA is however a big run up.

Past performance is not indicative of future performance


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