Andrew has been in the financial arena since 1990. He is a Registered Investment Advisor ad affiliate of Abraham Bedick Capital. Since 1993 Andrew has been a proponent of quantitative mechanical trading programs. Andrew's major concern is not only total return on investment but rather the amount of risk that one would have to tolerate in order to achieve returns He focuses on developing quant models that encompass strict risk adherence and correlation. He has been a speaker at conferences as well as an author of numerous articles. Andrew has spent years researching ideas that have the potential to outperform indices as well as maintain fewer draw downs.
For those of you that have invested in Mutual funds many of you have lost money in your funds over a 10 year period. Compare this to some of the great trend followers. They have been compounding money for decades. Trend following is not a new trading style. Rather trend following started with Richard Donchian back in 1949. After losing all of his money in the Depression ( buy & hold) he learned not to hope, predict price but rather follow a trend if/when it becomes present. The fact is since the time of Joseph and wheat in Egypt trends in commodities have persisted. Too many on Bloomberg or CNBC think they know the future. They come out with statements such as the stock market has bottomed or Gold has gone up to much or too fast and it will fall. A trend follower has no opinion…rather just follows the price action. This is the difference why trend followers who follow a plan have a potential to make money while most traders ( both stock market and commodity traders) lose money.
The point of this post to simply prove there are numerous commodity trading advisors that are trend followers that have compounded money over long periods of time ( Ranging from 10%-20% for decades on average). Last year was most fascinating… We had inflation ( wheat…crude) massive deflation and a bear market and these trend followers made money in the worst period since the great depression.
It is not as simple as just investing money in trend followers. Being an associated person… as well as CTA.. I have seen first hand that people feel that trend following is not intuitive, too long term,or just simply boring. Well one needs to understand why they are investing. My goal is to compound my way to wealth, not excitement. I have been fortunate to have been invested with one commodity trading advisor for 14 years. My investment 7 times over that time frame.
Look at some of these Trend Following Commodity Trading Advisors results .. Why would you ever want to invest in a mutual fund and hope the market goes up. With Trend Following a basket of markets one can go short or long regardless..( make yourself available for oppurtunities)..
Abraham Trading -Compounded annual rate of return 21.43% from 1988
Campbell & Co 9.86% from 1986
Clarke Cap -depending which program 9% up to 28% since 1993
Drury Capital 15.39%
Eckhardt Trading 24.66% since 1991
Dunn Capital since 1977 14.91%
EMC 24.71% since 1985
Transtrend B.V. 14.98%
Winton Capital Management 18.87%
Saxon Investment Corporation 15.73%
Chesapeake Capital 14.89%
Sunrise Capital Partners 14.16% since 1983
John W. Henry & Company 14.09%
Superfund 14.03%
Welton Investment Corporation 14.01%
Millburn Corporation 13.73% since 1977
Trend following offers the potential to compound your way to wealth. I trade a commodity pool with my colleagues as well allocate to other commodity trading advisors. Why ? My goal is to compound my way to wealth and after investing since 1994 have not found anything that gives me liquidity. transparancy and potential return as trend following in the futures markets. When trend following we look at products that we use in our daily existence. From waking in the morning…drinking my coffee or orange juice…eating my toast ( wheat)..getting into my car ( various metals) paying for gas…( depending which currency)..I am looking at items every person in the world uses… Each of them has bull markets and bear markets. Why do I need to limited just to the stock market and hope for a bull market. A quick fact from 1960-1970+ buy and hold lost money. Too many recent stock market investors only have the experience from 1982 ( the super bull market that might have ended).
Think about it… if you want to compound your way to wealth…learn more about trend following in the futures markets.
THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS. THE DISCLOSURE DOCUMENT CONTAINS A COMPLETE DESCRIPTION OF THE PRINCIPAL RISK FACTORS AND EACH FEE TO BE CHARGED TO YOUR ACCOUNT BY THE COMMODITY TRADING ADVISOR (”CTA”).
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