If you really want to trade, use the best futures trading system that you can find.
There are so many vendors offering “profitable” futures trading systems that can make you millions while asking for a few tens of dollars from you.
So much hype and so tempting to buy and try out. It is not surprising in an industry where so many people are losing money, selling futures trading systems has became a big business by itself.
Enter the Logical Greedy Futures Trading System
A very popular artificial intelligence method studied by computer science students is called the “Greedy Algorithm”. In a nutshell, when faced with various choices, the computer will choose the one that will maximize its outcome. When a series of such decisions is being made, logically, the computer will end up with a very strong outcome.
There are so many examples of “greedy” futures trading systems around, varying in terms of the time-frame that they trade in. In the extreme case of a greedy futures day-trading system, it will open and close trades whenever a fixed profit is being made, and continue in this manner for as many times as the futures market is open.
One feature is that such systems typically have no stop loss price as the “greedy” system developer reasoned that too many stop losses will eats into the profits. Moreover, fixed profit was obtained with a very high probability of 85% or more in backtesting with historical futures price data of 1-2 years or less.
Another feature is the capital at risk per trade. There is much more money being risked, such as up to 10% per trade.
Such systems should work. And yes, they do work, but for a limited time. From a short period of a few months to 1-2 years, the futures system will impress its users. Then one day, the system will have a big losing trade that thrashed the entire trading account because it does not have any stop loss in place and because it risked too much money in one trade.
Feature of the Best Futures Trading System
One little known type of futures trading system trades with a slight advantage. The system developer has a deeper insight into the futures markets, and reasons that one should not try to win consistently. In the competitive trading world, there are many intelligent and shrewd traders, and they are not likely to make mistakes that can be exploited.
Mistakes such as going long and adding to long positions, when the market is selling down, and holding on to losing positions with no stop loss. The best futures trading system should be designed with just the smallest edge that makes it profitable in the long-run.
And the long-run means 10 years or longer than that. It is this marginal advantage that keeps the profitable trader one up against the best traders and keeps their trading accounts out of trouble for as long as they want to be around.
Final Ingredient For the Best Futures Trading System
Coupled with a good money management algorithm that similarly has a slight advantage and you will have the best futures trading system in the world.