Commodity Trading & Trend Following

Today’s video discusses a trend following volatility stop I have used since 1998. There was an article in Stocks and Commodities magazine in Sept 1998 discussing this trading tip for algorithmic system trading.
Trading The Trend
by Andrew Abraham
Here’s a volatility indicator, presented here with simple trend rules for trading various markets.
New traders quickly become familar with [...]

This year has been very tough on many trend followers. It seems that many trend followers have not made money since December of 2010. Clearly there are exceptions such as Chadwick, Fort LP and Saxon however the majority including myself are having a flat year at best. The standouts on the downside are Chesapeake and [...]

There are those Madoff lovers who want consist smooth returns. Well they do not exist in the real world. As much as there is correlation between commodity trading advisors there is a randomness of returns over time. Some commodity trading advisors seem to have a great run and then hit a wall with some ugly [...]

It is always enjoyable to watch Marc Faber. It is even more funny to think that he can predict so many markets. Listening to “Gurus” can be very expensive to ones net worth. Maybe he is right maybe he will not be. Marc Faber predicts the US dollar will rebound, however Marc Faber is not [...]

Trend following in 2005 and 2006 had to be one of the hardest and challenging periods for trend followers. Not just my trend following was terrible but the majority of the CTAs that I had invested hit what I would call 6th sigma draw downs in the 30% range. Even worse than the 30% draw [...]

There are clearly many brokers out there but only several stand out as far as experience,knowledge and integrity. I want to share with my readers Mt. Kemble managed Futures. Todd is an IB for MF Global and has tremendous experience in the managed futures arena. I feel lucky to have found Todd. If you are [...]

For those of you who think trend following is retirement in a box or easy…it is not! Do you have what it takes to follow a systematic trend following plan without giving up when you have 8 trades or more in a row do not work? Do you have what it takes when you have [...]

Admittedly I am biased and believe that trend following has to be one of the best strategies for investors in order to compound money over time. The reason I can say this I have learned how to think when I invest. There is no magic system nor magic manager. It is all following an exact [...]

Dighton Capital was proven finally right today with it’s counter trend trade on the Swiss Franc. However they are right but in July Aug they suffered tremendous losses. Some say up to 80% Draw Downs. This reminds of the story of Larry Hite regarding putting on a trade if you know at the end of [...]

Investors waste countless hours trying to figure out why a market does what it does. There are those that think they have the answer why a particular market went up or down. The answer does not matter. What matters to trend followers is, has a new trend started possibly? Reasons do not matter. What matters [...]