Systems Trading
We are partnered with two futures trading system vendors (Striker and iSystems) who have conducted due diligence on a handful of system developers and over 1,000 systems, which have proven relevant. While past performance doesn’t indicate future results, these systems have established track records.
Use the links below to shop for futures algorithmic trading programs.
Striker Futures Trading Systems (implemented via letter of direction)
iSystems Automated Futures Trading System Database (implemented with online start/stop buttons)
Our systems can be executed in StoneX, Marex, Dorman accounts, and more.
What is an Automated Futures Trading System?
An automated futures trading system is a defined set of technical rules and parameters that ultimately determine entry and exit points for a given contract. If all of the stipulated technical events occur, a buy or sell signal is created, and a trade is automatically executed without human intervention.
Each system comprises specific ingredients and circumstances, commonly involving moving averages, stochastics, and other computer-generated oscillators.
As you can imagine, the results highly depend on how well the rules perform in various market conditions. Accordingly, system developers spend an incredible amount of time optimizing the system to manage risk automated System Trading with DeCarley Trading and increase the odds of profitable results in any environment.
Why use a Trading System?
1. Eliminate Emotion- Most unsuccessful traders are victims of fear and greed. An automatic trading system reduces the impact of human emotion.
2. Time-Saving—System traders have the luxury of having a day job or the freedom to step away from the computer during market hours. Trading rules are pre-determined, and execution is automatic, whether you are watching or not.
3. Convenience—Let others do the work for you. We provide 24-hour surveillance of several trading systems with which we have formed strategic relations. All you have to do is monitor your statements at the end of each day to ensure that you are satisfied with the results.
4. Like Markets, systems can be traded – Speculators can actively trade a futures system performance by implementing and ceasing system trading based on the peaks and valleys of returns. For example, it may be an opportune time to begin trading a system experiencing a drawdown and call it quits after a good run. This is because market conditions often fluctuate in cycles, during which the performance of technical futures trading systems also oscillates.
Drawbacks of using Automated Trading
1. Systems don't have Common Sense - Because systems are driven by technical analysis rather than human discretion, they often generate signals that may be considered low-probability trades. For example, a system may create a sell signal in a market at an all-time low or a buy signal at or near a contract high.
2. Back Testing isn't Necessarily Reliable – Systems are often developed through a process known as back testing. However, backtesting simply gives you information on what the system would have done if implemented in the past. It isn’t reasonable to infer that the same results will be obtained in real time or at any point in the future.
3. Markets are Constantly Evolving – Similar to the flaws of backtesting, system performance at any given point may or may not reflect its ability to operate profitably throughout time. This is because market conditions are dynamic, but system parameters are typically constant. While system developers can tweak the parameters to enhance performance, considerable losses may be sustained before the recognition of a need to adjust parameters.
4. Trades may be Contrary to your Opinion—System trading eliminates the emotions involved in making the decision to enter or exit a market, but it can be challenging to watch the system execute a long trade in a market in which you are personally bearish.
Do Automatic Trading Systems Work?
Let’s face it: if making money in the markets was as easy as buying or leasing a trading system and quitting your day job, then everyone would do it. Unfortunately, it is far more complicated than that. There are an unlimited number of trading systems and software sales representatives who will do whatever it takes to convince you that their product is capable of consistent returns in all types of market scenarios. However, we have yet to find such a “holy grail” of trading.
With that said, there are legitimate systems that have proven to be productive over time and in the right circumstances. Richard Dennis and Bill Eckhardt developed one of the most infamous trading systems, known as the Turtle Trading System. The Turtle System has enjoyed years of success, as evidenced by the financial accomplishments of its developers. Additionally, many hedge funds and institutional commodity traders have adopted system trading as their primary method of speculation. Perhaps this suggests that they can be a viable market tool.
Beware of trading systems that promise spectacular returns. When it comes to futures system trading, if it sounds too good to be true, it probably is. You must realize that many system creators and sellers aren’t required to register with the National Futures Association; as a result, they enjoy freedom of speech without accountability. Not all system vendors abuse the privilege, but some do, and you owe it to yourself to get the facts before putting your money on the line. As a consumer, you must know who you are dealing with and what is realistic regarding performance.
Use the links below to shop for futures algorithmic trading programs.
Striker Futures Trading Systems (implemented via letter of direction)
iSystems Automated Futures Trading System Database (implemented with online start/stop buttons)
