Futures trading systems are an automatic, computerized method of placing buy and sell orders. Trading systems software utilize the latest advanced computer technology to provide mathematical models based on past market prices, trends, divergence, momentum and other indicators.
Emotional decision making is often a trader’’’s worst enemy (greed, fear, disbelief, etc.) System trading removes this emotional element from trading. In fact, many top-performing Commodity Trading Advisors now rely heavily upon computerized trading system software.
Besides eliminating second-guessing, whims and uninformed decision making, the advantages of using a disciplined, systematic approach to trading are numerous:
Bottom line: Trading systems provide the much needed structure to trading. Each order placed is governed by a predetermined set of rules that does not deviate based on anything other than market action. A trading system will include specific money management parameters and the mechanical placement of those orders insures those rules are being followed.
The questions you should be asking right now…
A cardinal rule of successful trading: Adopt a definite trading plan. Because of the emotional stress inherent in any speculative situation, you must have a predetermined method of operation. That includes a set of rules you must adhere to in order to protect yourself from making irrational decisions.
Software for futures trading offers you the disciplined and unemotional approach to trading that can potentially increase your odds. In addition, the sheer processing power of a computerized trading system ensures that a watchful eye is kept on the markets around the clock. It would be impossible for a human trader to constantly monitor and analyze all global markets 24 hours a day.
To further highlight the value of following a system, here is a brief comparison of common characteristics of discretionary versus systems trading: