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:
There are as many trading systems to choose from as there are trading objectives – plus new systems being developed as quickly as market dynamics change. So, in order to answer that question, you’re going to have to do a bit of exploring.Considerations include:
Among the smartest things you can do is study the daily habits of winning traders. You will most likely find that they trade with a plan, analyze every trade and keep accurate records. Most traders know how much to trade, accept that not all trades will be winners and rarely if ever make the same mistake twice.
Whether you express it as a dollar figure or percent of the margin amount, you should always keep some money in reserve. Nobody wins all the time in trading. Setting limits upfront will lessen the risk of emotional decisions should the market turn against you.
On the other hand, multi-commodity systems provide trade instructions for more than one market sector and, of course, offer a broader spectrum of market exposure. Many
Multi-commodity systems are designed for trade across all market sectors.
While there is no textbook approach to selecting a trading system, your ultimate success hinges largely on your ability to develop good trading habits. While phrases like “the trend is your friend,” or “cut your losses and let your profits ride” are accurate, you need to understand the substance behind them.
Since hypothetical results are prepared with the benefit of hindsight, they do not reflect true financial risk. However, you can still view past performance as a good starting point for research. You can evaluate key performance statistics such as current year-to-date return, average return, average winning trade, maximum draw down, average draw down and average losing trade.
No question about it, futures trading is high risk. And, though the innovations in trading software can help you increase your odds, there are many other factors that go into successful trading. At Wisdom Trading we pride ourselves on providing a level of customer service and cutting edge investment products that is unsurpassed in the industry. We will do whatever it takes to help you meet your goals.
Together, our systems management professionals have over 20 years of combined experience executing mechanical trading systems for individuals, corporations and commodity training advisors. If you want us to ‘hold your hand’ every step of the way, we will do that. And, if you want more control of the process, that, too, is your choice.
As a client of Wisdom Trading, you will be assigned a personal broker who will play a key roll in the day to day activities involved with managing your system(s) of choice. We will provide guidance on choosing a system, and help you put your trading plan into action. The day-to-day work is all handled for you – downloading data, generating trading orders and sending those orders to the exchange floor for execution.
During the trading session you will receive a fax or email detailing each transaction. Plus, you will receive a follow-up fax or email each evening showing you the positions you have, margin required, and profits or losses from the previous trading session. You also will be able to check into your account’s real-time activity at a secure web site anytime day or night.
Taking advantage of these services will ensure that all of the rules for successful trading are followed. It also means that you can devote your time to the things you want to do, not what your system tells you to do.
Wisdom Trading is an NFA-registered Introducing Broker. We offer Global commodity brokerage services, managed futures consultation, direct access trading, and trading system execution services to individuals, corporations and industry professionals. As an Independent introducing broker we maintain clearing relationships with several major Futures Commission Merchants around the globe. Multiple clearing relationships allow us to offer our clients a wide range of services and exceptionally wide range of markets. Our clearing relationships provide clients with 24hr access to futures, commodities, and foreign exchange markets around the globe. Futures trading involves a substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results.