Commodity Trading & Trend Following

Robert Prechter thinks that a stock market crash will happen. One of my colleagues forwarded his Elliot Wave projections.

However investing on tips ( which everyone seems to want) is not healthy for ones investment pocket. One needs to put into perspective that as correct Robert Prechter was in 1987 regarding the crash…investors that heeded his [...]

There was a recent article in the wall street journal asking the question, “Has The Black Box Broken? This is not something new to long time commodity trading advisors and trend followers. I have seen these articles over and over again. If anything it encourages me to even allocate to more commodity trading advisors. [...]

Organization / Fund 2007 2008 2009 3 year
Max DD Lifetime
Max DD Minimum
Abraham Trading1
19.20% 28.81% -5.56% 7.24% 27.19% 10 M
Aspect Capital2
8.18% 25.42% -11.25% 21.53% 21.53% 500 K
Chesapeake Capital3
2.33% 15.38% 0.40% 23.36% 23.36% 5 M
Clarke Capital4
35.24% 79.90% -29.78% 31.19% 31.19% 50 K
Drury Capital5
5.00% 75.64% 9.02% 13.43% 32.51% 5 M
Dunn Capital6
7.60% 51.45% -0.57% 36.36% 60.26% 10 M
Eckhardt Trading7
34.12% 13.15% -4.80% 8.03% 27.11% 10 M
EMC Capital8
17.32% 46.30% -14.35% 16.54% 45.16% 2 M
Hawksbill Capital9
20.24% 96.22% -15.32% 24.67% 61.78% 5 M
Hyman Beck & Co.10
-5.85% 49.78% 3.96% 15.31% 29.27% 1 M
JWH & Co.11
18.61% 90.63% -24.06% 30.49% 30.50% 20 M
Man AHL Diversified12
19.61% 33.23% -16.95% 17.90% 17.90% 30 K
Millburn Ridgefield13
12.85% 20.61% -7.33% 16.16% 26.89% 150 K
Rabar Market Research14
15.12% 18.22% 6.99% 8.61% 29.84% 2.5 M
Saxon Investment15
21.20% 20.90% 10.37% 5.93% 41.49% 2 M
Superfund16
-0.92% 30.00% -29.46% 32.54% 32.54% 5 K
Transtrend17
14.46% 18.99% -8.36% 8.51% 8.51% 10 M
Winton Capital18
16.13% 21.02% -4.63% 10.26% 25.73% 10 M
Notes:
1. Abraham Trading was founded by Salem Abraham,. Introduced to [...]

Who do you believe?… Jim Rogers came out today and predicts food shortages. Jim Rogers thinks there will be food shortages because of the financial crisis. He believes the agricultural sector is low on funds and inventories are at the lowest levels in decades. An example is a recent trade that most trend followers are [...]

Everyone would love to know what would be the outlook for the commodity markets and commodity trading. After a roaring 2007 and 2008 it seemed that commodity trading advisors would know no limit. The stock markets collapsed in 2008 and fear was rampant through out the world. During the turmoil when virtually every strategy lost [...]

There was an interesting article online of Forbes discussing Billionaire predictions that I glanced through this morning. My immediate thought was..Do these Billionaires know something that we don’t? They know better than us? What I expected was they had a variance of opinions as we all do…as well as they are optimistic.. Really they are [...]

In my opinion…everything boils down to risk… not how much you can make..but how much you can lose in commodity trading. More so when we put on a trade..we think to ourselves mentally…how much is this going to cost me to see if the trade will work. The sad thing is that most people [...]

Countless investors fear a double-dip recession. It is quite possible that a second drop of economic activity during 2010 will occur. It is also quite possible that the supportive actions of governments will run out. Even the central banks are not a bottomless pit ( as long at they have enought paper to print more [...]

I am not a gold bug or an end of the world fanatic… but in all seriousness…Can Gold be the next currency? Honestly…As an investor, I became very concerned about having my assets denominated in U.S. dollars. Even if I was clever enough to denominate my assets in other currencies…the fact is they are all [...]

Trend Capture
You do not hear that often the word trend capture in commodity trading. Most of the time it is called Trend following. The difference however depending on how the commodity trader or commodity trading advisor trades there are times big draw downs occur as well as big profits are given back in trend following. [...]