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 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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Duration of Draw Downs When Trend Following

Worse than losses are the duration’s of draw downs when we trade and especially trend following. Duration of draw downs are periods of time in which we do not make money and are under water with losses. The last 2 years have been challenging for trend followers. In my trading programs my last equity peak was in November of 2010. This is a long time not making money. As my passion is building trading models and systems to trade, this might sound like a long time…however statistically this is not out of the norm. Many ( Most) systematic trading and commodity trading advisors will go through periods of 2 years plus in which they do not make any money. This is reality!

Nothing sugar coated.

However as much as past performance is not indicative of future performance and this duration can easily extend for a much greater period…. contrarily this could be an interesting period in order to contemplate investing. Besides trading my own systems…I allocate to CTAs during their eventual draw downs. There is absolutely nothing perfect. I invested last year with one CTA who was down in the 20%+ range. He is still down and actually.

Past Performance is not Indicative of Future Performance

Notice in the chart the durations…His worst ( so far) were 16 and 17 months. Possibly he will rebound soon…and maybe not…. The only certainty in trading is uncertainty. You need to make your bets, be prepared and accept the losses & draw downs.

Past Performance is not Indicative of Future Performance

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