What is a trading system?
A trading system is a tool used by traders that uses objective entry and exit criteria based on parameters that have been determined by historical testing on quantifiable data. Systems are automated, run electronically, and linked to an exchange for trading. Developers will implement systems revisions (updates) as they see fit.
Why should I trade a system?
Trading futures using an automated futures trading system provides the discipline to overcome the fear and greed that, in many cases, can paralyze you from making timely decisions. With systems trading, each order placed is governed by a defined set of rules that does not deviate based on anything other than market action.
What should I consider?
Like all kinds of tools, trading systems, if not used properly, can be dangerous to your economic health. You should evaluate your tolerance to high-risk futures trading, to putting capital at risk, and to withstand equity draw-downs. You should also evaluate the cost of the time and money required to trade futures.
How do I know if a system is any good?
One of the key elements to research is the ability of a trading system to perform over time. We encourage you to take your time and study results before you open a trading account. Evaluate a system’s a draw downs and see how the system recovers from it. The only true test of a system is to see how it performs in actual trading where slippage and trading cost are a part of the record.
How much money do I need?
The minimum deposit to open a futures trading account varies depending on the specific trading system you wish to use. In addition, you should only consider opening a futures account provided you have sufficient risk capital due to the leverage inherent in futures trading.
How do I get started?
The first step is for you to understand the risk as well as the rewards when using a futures trading system. If you are comfortable with a system the next step is to open a futures trading account and select the trading system(s) that best fits your personal risk tolerances and trading objectives. If the trader is not comfortable in operating the selected trading system(s), the trading system(s) will be "auto-traded" in the traders account for the traders benefit. The group executing the systems is not permitted to trade futures, so our focus is always on providing the trader the very best service.
What are the risks?
Any one system may be subject to market specific, system specific, or complex specific risk. By trading multiple systems across different markets, you may reduce market specific and complex specific risk. By trading systems with different entry and exit strategies, you may reduce system specific risk. However, the risk of trading can be substantial and you must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated tests of strategies, is not necessarily indicative of future results.