Commodity Trading & Trend Following

The most important issue in systematic trading is not the indicators or entry/ exit system. The most important issue for systematic trading and algorithmic trend following is managing the risks. If you do not manage the risks properly, I promise you will have a draw down greater than you can tolerate. In my courses I [...]

There are no Holy Grail trading indicators. I have been receiving responses from attendees from the Reuters/ Metastock webinar and many are looking for unique indicators. What I have expressed to them that this should not be their focus. Once I learned to focus on the risks and utilize a robust trading plan overtime I [...]

I have attached last nights Reuters Metastock Webinar on Trend Trading. For those of you who were not able to attend you can watch the webinar in it’s entirety.
Just click on this link to open
Trend Trading Webinar with Andrew Abraham
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures [...]

It is not about any magical indicator or system. There is no Holy Grail or easy way to make money. People that try to convince you this are not real traders or trade for a living. One of the key components of successful trend trading is about knowing what to buy or sell. This trading [...]

Many do not have patience and can’t wait to ring that cash register. They want to reach a profit target. I let my profits run when I am trend following. I know that I do not know the future and I diligently follow my trading plan. I believe in my methodology and plan to let [...]

Before I even attempt to answer, How long do you think it takes a doctor to learn his skills? How long do you think it takes a lawyer to learn the law? I can keep on going but you get the idea. As much as trend following on its own is simple in nature, it [...]

I just returned from the Alphametrix conference in Florida. What struck me was a commodity trading advisor who now is managing in excess of $600 million dollars. When he started he only had a small trading account and to make matters worse was his first two years he was down -3% and the next year [...]

One of the biggest misnomers of trend following is that you need up to the minute information and speed. Supposedly, the faster the better.
Well the reality is, No…Forget about having the fastest computer or up to the millisecond of information. In my personal experience this is not what is needed as well as you can [...]

Yesterday was an interesting day for trend followers. Many CTAs as well as myself have been long corn for quite some time. Without warning as gaps occur corn fell approx 40 points or a loss of $2,000 a contract. This is the reality when trend following. The unexpected needs to be expected. Always trade with [...]

Is it intelligence or simply that successful trend follower’s work harder? Do successful trend followers have better trading systems or computers? Why do the vast majority of beginning traders fail? One has to take into account most beginning traders are successful in their own right. Many unsuccessful traders include professionals such as pilots, engineers, doctors [...]