I have had countless conversations with investors and even institutional investors that do not believe that commodity trading and trend following can compound ones money to wealth. Besides the fact that only trend following and commodity trading are the most liquid, the most transparent and most highly regulated industries the common belief commodity trading is risky. Well the truth is, everything is risky. Even staying in cash these days is risky.

Risk must is managed and addressed. The point of this point is show there are commodity trading advisors that have been around for decades that have compounded their way to wealth not just for themselves…but for their investors. The reality is so many investors might have invested with some of these commodity trading advisors but at the slightest draw down they ran for the exits. Successful investing with trend following commodity trading advisors requires a long horizon, patience and discipline to stick with the commodity trading advisor during the darkest draw downs ( there will be plenty…no one promised you this would be easy). Look at some of these commodity trading advisors.

Abraham Trading Company Since 1988 Annual ROR: 20.88%

Aspect Diversified Program Since 1998 Annualized Return 10.09%

Beach Horizon LLP This return since 2005 Annual ROR: 19.44%

Campbell & Co Since 1986 Global Diversified Large Portfolio Annualized Return 9.25%

Chesapeake Since 1998 Annualized Return 11.73%

Clarke Capital Management Since 1995 Annual ROR: 14.23% ( depending on which program)

Di Tomasso Group’s Equilibrium Program Since 2002 Annualized Return 43.09%

Drury Diversified Trend Following Program Annualized Return 15.46%

Eckhardt Global Financial Program Annualized Std. Deviation 12.64% since 1980s

I can go on and on… Simply compare these numbers to the Stock Indices. The majority of trend followers had greater returns than simply stock market investing…and most of all…less draw downs….On several instances the stock markets have fallen close to 50%. Who wants to go through this painful experience?… There are no guarantees with trend following as well… The greatest draw downs are always ahead of you.

More so the above mentioned commodity trading advisors are shown just as an example. I am not endorsing them or suggesting you invest with any of them. You need to do your due diligence. I have invested with some of them however.

When I discuss compounding your way to wealth, I do this every day. I invest with other commodity trading advisors to smooth out our trading. There are no magic managers nor magic systems. My goal is to grind out returns over many years and make myself available for trends when they are present. This is the way to think if you truly want to succeed long term.

Andrew Abraham
www.myinvestorsplace.com

Andrew Abraham has been in the financial arena since 1990. He is a commodity trading ddvisor and co manager of a Commodity Pool. 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.

Visit Angus Jackson Partners (http://www.angusjacksonpartners.com) Contact: A.Abraham@AngusJackson.com (mailto:A.Abraham@AngusJackson.com)

© 2009 Copyright Andrew Abraham - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.