System Trading

Automated Trading Systems

What is it?
An automated trading system is a computer program that makes decisions based on very specific rules and logic.  The systems are typically built by system developers with professional trading backgrounds.  Utilizing an auto-trading system, removes human emotion from the trade – fear, greed, boredom and fatigue do not come into play.

Auto-Trading Systems are ideal for….

• Investors who want to diversify their portfolio into commodity futures trading but do not have the time to learn how to trade for themselves.
• Investors who want to diversify their investment portfolio but do not have the risk capital required by most professional Commodity Trading Advisors.
• Traders who find that making daily trading decisions in multiple markets is too difficult to keep on top of without falling into the common human emotion traps.

Amateurs vs Professionals
Trading futures and forex is not something to be treated as a hobby.  More than anything else, this is what separates professional traders from the amateurs.  Professionals look at their trading as a business.  There are substantial opportunities in these markets, but taking advantage of these opportunities is a lot harder than most people think.  A professional trader spends years of study and working with mentors to gain the experience to be successful at his craft.  Would you expect any profession to be any different?

Why use an Auto-Trading System?
Trading the way that most non-professional self-traders do – unstructured and with unbridled emotions – certainly adds fun and entertainment to the game.  But if you are serious about making money, this is not a game.  Treating it like a game will, in the end, lose money.  All human traders, whether amateurs or professionals, run the risk of letting their emotions overtake the logic.  For some, it is ego, greed and wishful thinking that undermine their effectiveness.  For others, it is denial, fear and panic that shakes their confidence. When it comes to trading the futures markets, human emotion can cause traders to be inconsistent and undisciplined.  The commonly held belief that 9 out of 10 self-traders lose money can be largely explained as a consequence of human emotion.

System Discipline
An auto-trading system generates instructions based solely on programmed rules.  These system rules determine timing for market entry and exit, profit targets and protective stops that can limit losses.  A systems code is emotionless.  The system does not believe, feel, worry or obsess over a trade.  It simply transacts unemotionally.  System execution is objective, disciplined, quantitative and scientific.

Let us know of your interest.  We will discuss your risk profile and then introduce you to one or more system providers that fit what you are looking for.

No system is perfect; no system can guarantee profits. The risk of loss in trading futures can be substantial. Please read our full risk disclosures by following the link at the bottom of this web page.