Investing in Drawdowns

Discussion in 'Index Futures' started by mikeriley, Aug 21, 2022.

  1. mikeriley


    In reading The Trend Following Bible, the author Andrew Abrahams details his Trend following/compounding strategy in investing in Hedge Funds that are currently in a drawdown period, but have positive returns long term.

    Mr. Abraham outlines how top CTA's operate to incorporate effective methods through money management protocols, stringent risk controls, that allows them to catch big trends, while limiting losses on unprofitable trades.

    I found this read better than expected, as he took the time to outline successful strategies and tactics of all the prior Turtle traders who started their own Hedge Funds after the Turtles program was disbanded.

    For detailed analysis to identify possible candidates for this approach, just examine performance statistics of CTA's and Hedge Funds at

    00 trend following bible.png
    murray t turtle likes this.
  2. Most hedge funds, if not all, have sh*8t returns. They barely match the S&P annual average. Just an excuse to collect fees.
    I wouldn't necessarily look too highly upon them as an aspiring trader looking for insight, wisdom, and the Holy Grail of some sorts.

    Investing in Drawdowns....'Buy the Dip'....everyone says that across social media. It has become such a cliche, meaningless, catchphrase.
    Buying the so-called dip is meaningless....if someone doesn't reasonably know the future.
    A trader/investor doesn't want dead, neutral, unproductive time. They wants returns, performance...all the time.

    Waiting, and playing averages, are for losers. And hoping and praying too in the market.
    Ideally, everyone should be a market expert. And always have productive time generating returns.
    Last edited: Aug 21, 2022
    SimpleMeLike likes this.
  3. Nobert


    For an average person it's better to stick to DCA.
    Anyone with experience can stock-pick by names.

    Many times those hedge funds are just a clown show.
    murray t turtle likes this.
  4. schizo


    Can anyone offer a cliffsnote version of this guru's mumbling (other than "No shit, sherlock!")?
    d08 likes this.
  5. deaddog


    If you know what's going to happen you could do really well if you enter and exit correctly, pretty well sums it up!:rolleyes:
    MACD, murray t turtle and smallfil like this.
  6. If you reasonably Know and understand the future, you can get rich in the market,
    [​IMG] > [​IMG]
    The problem is, way too many traders rely on bogus, theorized, indicators and flat, outdated, support/resistance levels. Don't you think if all of those things truly worked....everyone would be so rich all around, but that's not the case.

    It's laughable watching some amateur clown get so excited about trading after reading a book or two or buying a course or watching a couple of YouTube trading videos...thinking they will print money in the market, and they are a genius, and the good life awaits them,
    Schizo 20,22
    Last edited: Aug 21, 2022
    M.W. likes this.
  7. Hello MacBookProHo,

    I agree sir. 1000%

    The goal of every ET member or retail trader is be making $XXX,XXX per year trading a year within 5 years of trading. And $X,XXX,XXX per year after year 10 of trading.

    How gives a rat ass about hedge funds.

    Invest in SP 500 index monthly if you want average returns.

    We are traders, we here to get rich, and get rick QUICK.
  8. schizo


    Is that a cryptic message as well?

    At any rate, it's not what you say but what you do that matters in the end. As for you, you speak of all these banal things (which I believe anyone with a decent IQ would already know) without any proof that you know what you are talking about. None, zero, zilch. In another word, it's pretty useless.

    I got a suggestion. Why don't you give more concrete pointers, like where you got in and out of the trade (in REAL TIME) along with your explanation why you got in at that particular time.

    Then I'll give you the benefit of doubt.
    d08 likes this.
  9. This place is called Elite, Trader. Everyone should be....Elite, bold and ambitious and special... not average or settle for averageness.
    Everyone here should be making XXX,XXX per year from trading. But I know that's a fantasy scenario. And the truly elite should be making X,XXX,XXX per year from trading. or even 8 figures.

    Don't rely on Luck, Hope, Prayer in the market. During my first five years in the market....I was heavily obsessed with luck, chanting and even voodoo. I finally got better....when I gave up on Lucky symbols, Hope and wishful thinking and prayer.
    The market ocean only cares about intelligence and boldness. Fortune favors the Bold.
    There are so many fake, impotent, traders here and elsewhere who basically make nothing despite all their words, history, experience, posturing and panache.
    The market is indifferent to religion, sex, your history, skin, political affiliation, looks, age, sexual orientation etc etc misc greatly rewards intelligence, ingenuity, insight and boldness.
    Last edited: Aug 21, 2022
  10. schizo


    And supposing that YOU reasonably know the future already, tell me where S&P500 will be heading next week.
    #10     Aug 21, 2022
    d08 likes this.