Salem Abraham: The Best Little Hedge Fund in Texas?

An article (PDF) about Salem Abraham and Abraham Trading (with a nice mention of my book ‘The Complete TurtleTrader‘).

salem abraham of abraham trading

9 thoughts on “Salem Abraham: The Best Little Hedge Fund in Texas?

  1. According to the article, Abraham has recently invested $3 million of his own money into his program. Loading up in a drawdown. You can bet that $3 million will be worth a lot more here soon.

  2. It seems as though Boone Pickens gets IT. Also, Adventist Health Systems gets IT. What is IT? The knowledge that making positive returns every month/every year is not what is important. Turning one sum of money into more money is what is important. Obviously, Salem has proven that he knows what he’s doing, so you don’t pull out in a drawdown, you add more. I bet if you would ask those investors who pulled out during the tech boom if they’d wish they had just added more to Abraham, I’m sure everyone knows the answer.

  3. Im surprise to see him using reversion to the mean strategies and short term trading. I would have thought we was only a trend following. Many ways to make money

  4. The date they gave for performance was through July 26. Specifically mentioned Wheat and Cotton. Two of the hottest runs in the market currently. I would love to see an update of his performance at the end of the year.

  5. Tod Miller in #2 says, “…Salem has proven that he knows what he’s doing, so you don’t pull out in a drawdown, you add more.”

    Okay, but that’s not Trend Following.

  6. Bryan, I would argue that trend followers trading their equity curve (believe what Todd is saying) is appropriate if one knows the risks and rewards. He is not talking about adding to losers (don’t think). More subtle.

  7. A friend of mine on National Radio said that the hardest thing for him is staying in a stock that is on a big up move. He tends to sell on small pullbacks. I have solve his problem and I will give it to him when I see him next week. Yes you have to know and act on the trend of the market, but what if you have a strong stock like Apple that keeps going up when the market turns down? I’d like to talk with Salem.

  8. I have page 30 of Michael’s Trendfollowing book photocopied and taped by my computer screen…it’s a 2-year chart of the Yen and Bill Dunn’s entries and exits.

    Did he hit the bottom? Nope. Did he hit the top? Nope. Did he lose his shirt immediately after getting into the short trade? Yep.

    Did he make a fortune in the Yen? Yep!!!

    Tells me everything I need to know about when to get in and when to get out.

  9. As for Abraham “doubling down”…our goal in this game is to become the casino. Someone can win $25 million at the tables (as happened in one of Trump’s casinos in his “Art of the Comeback” book) but if he keeps on playing, the casino eventually gets it back — and then some. The guy in the book gave it all back to the casino, plus a few million besides.

    There’s a big difference between a drawdown and a trend reversal…Abraham’s playing the odds on this drawdown. That’s smart.

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