For more information, please review the following presentation: Understanding Futures Trading Systems.
What is a futures trading system? Simply put, a futures trading system is a method of trading that uses objective entry and exit criteria based on parameters that have been validated by historical testing on quantifiable data. Trading futures markets using a trading system provides the discipline to overcome the fear and greed that prevents a trader from making timely decisions. Each order placed is governed by a pre-determined set of rules from which there is no deviation. These trading systems seek to profit in any market condition, from bull to bear to flat.
How do futures trading systems work? Futures trading systems come in many different forms. Some are “mechanical” (completely computerized), while others rely on a human to interpret market data and issue signals. These systems can follow a variety of trading styles and methodologies, but all of them use some means to issue a signal to buy or sell a given quantity of a commodity.
AT BTR Trading Group, most of the systems we suport are computerized trading models–software also known as “black box” or algorithmic trading systems (“algo” trading). This software operates in one of our secure server environments where it transmits trading signals to the exchanges. Some of these systems are market advisory services whereby signals are traded manually, as they are issued via email, instant messenger or other means.
Futures Trading Systems trade across many different markets and time frames. Some only trade during the day, while others hold positions for short market cycles of a few days or weeks. They also employ a variety of methodologies to produce their trading signals, from momentum systems to contrarian systems to spread systems.
If you would like to trade a system, we will establish an auto-trade account for you. You can select any system we offer or bring us one of your own (we can trade any system or advisory service you like). The trading signals will be traded in your account automatically.