Best Futures Trading System – Where to get them

Everyone want the best Future Trading System. But where to get them?

When you look for the best Future Trading System you have to decide two things:

  1. What is your best Future Trading System
  2. Where to get your best Future Trading System

What is your best Future Trading System

You have to decide what your future trading system should do.

  • Which timeframe: Day trading, swing trading or long term trading
  • Which market: Indices, metal, agrar, currencies, commodities,…
  • Which metrics: Profit Factor, Number of trades. drawdown, Average Net Profit,….

There is no better or worse. Mostly there is a trade off.

Timeframe

If you increase the timeframe (duration of time in the market) you will get a higher average net profit per trade but you have to suffer a bigger drawdown. Furthermore, long term trading tends to have more losing trades than winning trades. But the winner is big. Can you sustain a row of loser?

Market

The markets have different characteristics. For example the indices.
During the main trading hours, i.e. the trading time at the New York Stock Exchange (NYSE) from 9:30 AM to 4:00 PM Eastern Standard Time (EST), you will see a high Volume and a lot of liquidity. Outside this timeframe the volume and liquidity is significantly smaller but you still can trade one contract without risking high slippage.

Currencies are traded nearly the whole time with a high volume and liquidity. But you have to look which currency you trade because the overall volume of the market differs. For example the USD-EUR is the most traded currency contracts. This reflects that most people in the world have either USD or Euro.

Commodities on the other hand have less volume and the trading hours are shorter. This can be an advantage, if you want to do day trading, but on the other hand it can be more risky, because opening gaps occur more often than in the above mentioned markets.

Profit metrics

PerformanceReport_STS_RSI_TF

In this picture you can see some of the most common measures of a trading system.
Depending on the market you trade and the timeframe the value differ.

Net Profit = GrossProfit + GrossLoss. It should be positive in any case.
Gross Profit = Cumulative total of all winning trades during the specified period
Gross Loss = Cumulative total of all losing trades during the specified period
Profit Factor = Amount made in relation to the amount lost.  This value is calculated by dividing Gross Profit by Gross Loss.  By definition, a value greater than 1 means the trades have a positive net profit. I recommend higher than 1.5 in general.

Average Trade Net Profit = Average amount of money (won or loss) for all completed trades, during the specified period.
Average Trade Net Profit =  Total Net Profit divided by Total Number of Trades. Trading futures contract it should be bigger than 100USD per contract.

Return on Initial Capital = the percentage return of the Total Net Profit to the initial starting capital, during the specified period.
Return on Initial Capital = Total Net Profit divided by Initial Capital.

Max. Drawdown = Displays the greatest loss drawdown, from the previous highest equity run-up, bar to bar (see Note) looking across all trades, during the specified period.
This is one of the crucial numbers in the report. If you want to start to trade this strategy you must be willing to lose this amount because this is “normal” for this strategy. If you don´t accept this, then you have to look after another strategy or other timeframe or market.

Max Trade Drawdown = Return on Initial Capital displays the percentage return of the Total Net Profit to the initial starting capital, during the specified period.
Return on Initial Capital = Total Net Profit divided by Initial Capital.

After you have a clear idea want you want and what you don´t want, you can move to the next part.

Where to get your best Future Trading System

You can look around the internet and hope to find someone, how offers you a realistic and really good Future Trading System.

There are also a few online platforms out there, where you can look around.

ISAG

They offer you on their website a lot helpful information. They have a lot of CTA and Managed Fund in their portfolio. You can look at the past performance of all this investment. After you register for free you can use their powerful tools.

You can build your own portfolio and look how it worked out in the past. You can see all the relevant data, like performance, drawdown, fees, minimum requirements and so on. The performance is already reduced by the fee for the system.
Futhermore, you can see in which market each strategy invest and how they invest, i.e. research or automated or a mixture.

Striker

Striker is another platform. The advantage of this platform is, that all the strategies that they offer, are traded initially by the developer. Later, if there are some costumers, they take the performance data from the costumer or the developer, depending whether the developer trades his own product or not.
After registering for free they provide the actual performance of all trading strategies they offer. They have also a ranking over the last month, last six months, one year and lifetime of the system.
The performance is already reduced by the fee for the system.

Collective2

At Collective2, you find a lot of strategies. After registration you get a demo account and check out the different strategies. After choosing a strategy, they call it “leader”, you can trade it with your own money or as they call it “follow”.

Tradestation

Tradestation is a Trading platform, broker and also supports developer to distribute their strategies or indicators. If you are a Tradestation customer, you can choose a lot of strategies, depending on your parameter. For example Future market, trading style (trend, counter trend) , paid or free. Most of the paid strategies offers a free trail. You can choose the strategy and Tradestation loads it on your trading platform. There you can check it out. You can run a performance report and check how the strategy behaves, if you change their parameters, if available.
Here you can look at a swing trading strategy.

Make your own

Still not satisfied?
Build your own automated trading strategy. Choose a trading platform, where you can develop your own strategy, for example Tradestation. Learn the tricks, trade your own strategy with your own money and rent it at, for example on one of the above mentioned platforms.

I hope this blog helps you to find your best future trading strategy.
Do you have any suggestions? Please leave a comment.

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