Toby Crabel - one of the best traders in the world

I would like to introduce you to Toby Crabel. Some readers will certainly have heard of this successful fund manager and author of the trading book Day Trading With Short Term Price Patterns and Opening Range Breakout (English), but for many readers the name will be new.

I think you can learn a lot about successful trading by looking at the publicly accessible trading results of Toby Crabel. It is one of the very rare book authors, who have also proved their skills in the trading business in practical implementation.

Who is Toby Crabel?

Toby Crabel is an American futures trader who has become a millionaire with his trading in commodity and financial markets. He is the fund manager of the hedge fund Crabel Capital Management, which he founded, which currently has more than $ 1 billion under management. His team consists of more than 50 employees, traders and analysts.

In 1990, Crabel published a well-known and highly recognized trading book entitled Daytrading with short-term price patterns.

Prior to becoming self-employed with his own fund in 1992, he worked for the well-known hedge fund manager Victor Niederhoffer, George Soros spent over eight years managing the bond and currency business. (Victor Niederhoffer is author of the book The Education of a Speculator.)

Toby Crabel writes on his website about his trading philosophy:

• Our core trading philosophy is that our strategies capture the consistent and explainable behavior of the market participants. We believe it is very important to diversify the risk in every possible way, including the strategy type (ie momentum and mean return), geographic region, sectors and individual markets in a sector. We also believe that the risk can be best controlled by making a large number of small trades and not putting a few large bets on a small number of trades.

Trading Performance

The monthly performance of its trading results is published on this website:

Toby Crabel Performance

From March 1992 until October 2017, the monthly trading results of the fund can be seen. From 1998 to 2007, he has been profitable for 10 consecutive years. Overall, there were only three years with a minimal loss. His biggest monthly loss came in 2001 with -9.81%. His longest drawdown was from April 1998 to August 1998 with a maximum capital decline of 16.27%. The average annual trading profit is 10.78%. Overall, a capital increase of 450.52% was achieved.

With this proven performance for a hedge fund, Toby Crabel is one of the best traders in the world. There are only a few fund managers who have been able to create such a balanced positive capital development over a period of almost 25 years.

What can we learn from it?

Positive trading performance achieved over many years can only be achieved if the risk per trade and the risk of all open positions are kept extremely small. Toby Crabel also manages to make his drawdowns relatively small. It also does not take very long, and the losses are again leveled. As a fund manager, he can not allow great swings in account development. And this is exactly what we, as private traders, should take as an example. Small positions act and always keep the risk low and under control.

Conclusion: I am curious how Crabel Capital Management will continue to perform in the coming years. For me, Toby Crabel is a trader / fund manager who convinces.

Website of Crabel Capital Management