Stocks, ETFs, Options, Commodities & Currencies

My last post I talked about how “The Market You Trade Is Not Random“ which is what originally got me interested in trading. Let me continue with this series of how algo trading turned into my dream job and income stream.

In part one of “How Algo Trading became My Focus, Passion and Income” you saw how my 15+ years of trading evolved from trading only, to teaching and coaching others, and then writing financial newsletters to provide thousands of followers with video analysis, trading tips, and the occasional trade idea.

During that time it became clear that teaching and providing the masses with trading strategies that would provide a consistent stream of income year after year was much harder than I expected because of the way humans function as explained in part 1 of this report.

Seven years ago in 2006 is when I caught the algo trading bug. It was the day I saw an interview on CNBC about a trader who converted each strategy he had into algorithms and had incorporated each one into a powerful algo trading system. It was this hands free trading idea I was sold and set out to convert my trading strategies into an algo trading system of my own.

Having an algo system that trades and profits in up and down market conditions without having to look at the charts or pull the trigger on entering and exiting setups sounded so good I was determined to build my own.
Within a couple of hours of Googling the terms automatic investing, algorithmic trading, and algo trading type search results I had answers to my list of basic questions. Once I knew what trading platform I should use, some basic guidelines on what to look for in a trading programmer, and the main do’s and don’ts about algo trading I was ready to start calling my list of programmers. By the end of that day I had myself a programmer ready to start my project and I was fired up!

12 Algo Trading Strategies in One Automatic investing System for Individuals


Fast forwarding to today, hundreds of version of each of my algorithms, and 4 programmers later I now have my own automatic investing algo trading system that naturally expands and contracts with the stock market using cycle analysis, volatility, trends, price patterns, volume and sentiment to invest in the S&P 500 index.

This all-in-one system has 12 of my best trade setups and strategies for the S&P500 index. No matter the market direction (up, down, or sideways) and no matter how volatile or lack of volatility it has there is an algorithm strategy taking advantage of the stock markets price fluctuations because we specialize (live and breathe) to make money from this highly liquid index..

Do not diversify. Specialize.

“Diversification is a protection against ignorance.
It makes very little sense to those who know what they are doing”.
Warren Buffet

Know that the number #1 problem investors struggle with is themselves because of the emotions, lack of focus, and lack of commitment us as humans have. And no matter how hard you try to make you’re trading rules simple to follow and execute you will always stray from what you should be doing from time to time.
Your will typically break your rules during a losing streak or highly emotional time in the market when it’s either overbought or oversold and you do not think your systems next trade will be a winner. Because you fall off the wagon at these critical points which happen to be the most important times for your system to make money in most cased you sabotage yourself and watch missed opportunities pass you by and you investing performance drop dramatically.

In the next part, you will learn about some really cook stuff and just how to take advantage of algo trading systems and how much money you can make on a monthly and yearly basis with zero investing/trading input.

Stay Tuned For Part III – How You Can Make Money With Algo Trading …

Chris Vermeulen

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Every investor has seen the odd phenomena of stocks going down when there is good news about the stock or conversely stocks going up when there is bad news about the stock.* Is there a system that can be used to help analyze these trends and to be able to then predict stock trends?* The answer is yes, and one possibility is Elliot Wave Theory.

Elliot Wave Theory examines how groups of individuals react en masses to things in their environment and the psychological reasons for such reactions. Elliot Wave Theory then groups those reactions into predictable patterns or ‘waves.’* Once you have identified a particular trigger, you can then predict the coming waves and how groups will behave in accordance to those waves.

Elliot Waves: mini waves make up bigger waves

The key component of Elliot Wave Theory are the Elliot Waves themselves. Several mini Elliot Waves will make up one bigger wave. The bigger wave is known as a fractal. Fractals can then be grouped together to create an even larger wave showing a complete trend based one trigger.

Elliot Wave Predictions

The stock market is an excellent vehicle to use Elliot Wave Theory to analyze potential market trends.* Once a potential trigger has been identified, the potential movement of the stock can be predicted by the applying the Elliot Wave principles. Opportunities for solid Elliot Wave Predictions exist whether the stock is moving in an upwards or downwards trend as Elliot Wave Theory accounts for upwards and downwards movement.

Elliot Wave Gold

Elliot Wave Theory can be applied to anything that is traded, including gold. Elliot Wave Gold systems can provide an opportunity for excellent growth. The key of course is being able to identify a trigger, understand that triggers implications, and then predict how groups of investors will react. That’s where solid, proven Elliot Wave Theory application can give you an edge in your invested strategies.

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If you are a trader and are looking for a regular method that could be used to boost your P/L, then automated futures trading systems could be the answer to your problem.

So, just what is a futures trading system? A trading system is effectively a set of rules that you will use to place all of your trades in the market. These rules tend to be automated trading signals and are executed through a computer, to save you time and from human error.



What are futures contracts? If you want to look at it in the most basic of terms, a futures trading contract is like stock that has a specific expiry date.

So, why should you trade something like that? It’s quite simple. As a trader, you want to have as diverse a profile as you possibly can. Diversity is very important to traders and those with large trading accounts.
The majority of these futures contracts are based on commodities like gold and oil, coffee and grains. Because these materials are used pretty much constantly worldwide, it makes them almost immune from the spikes and dips that you get from other markets.

Using automated futures trading systems to devise your strategies for the markets is very important as it helps you do two things. One, it will help you understand the markets better as you can track and trade many different futures trading contracts at the same time with ease. Secondly, you will be able to avoid human error and trading from your gut (emotions) which tend to have a negative impact on futures trading systems.

Automated futures trading systems are very important for the active trader. A futures trading system can help to balance your portfolio volatility, and they can stop you making bad decisions based on your gut or your “feel”.


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In this series I would like to share with you the four biggest mistakes traders and investors make which costs them time, money and usually self-confidence when trading stocks, ETF’s or futures trading strategies.

The Four Biggest Mistakes

1. Lack Of A Trading Plan
2. Using To Much Leverage
3. Failure to Control Risk
4. Lack Of Self-Discipline

Throughout this multi-part series I will cover the major mistakes, why traders make them and how you can avoid them with your stock, ETF, and futures trading strategies.

While most books about trading are based on success, I want to talk about the other 90% of traders and trading results – the dark side of the business. Why? Because if you can avoid the mistakes then success should naturally happen. Trading As Your Business should not be taken lightly and it’s generally the little things (negatives) that make the biggest differences.

Part I – Lack Of A Trading Plan

Recently to took a free online course by Steve Blank. The program was called “How to Build a Startup”. This course was really well done and if you are an entrepreneur then it’s a must do course hands down. I think it took me roughly 10-12 hours (online videos with embedded quizzes). Anyway, Steve teaches you everything you need to know and do before starting any type of business and why so many individuals fail to succeed.
The #1 mistake made by traders is because they have no trading plan to guide them through the financial market place. A surprisingly high level of traders enter the market without a clear strategy on how they will trade in and out of the market. Most traders are so excited to start trading they simply skip the process of creating, building and testing a stock, ETF of futures trading strategy before they actually start trading with real money and why there is a high rate of failure.

If you take great pride in your trading and truly want to succeed over the long run, then I am sure you find yourself as I do, constantly consumed by monitoring your trades and strategies to be sure the process is executed correctly. If this is you, then congratulations, you are rare and likely making some big money.

Why Do Trades Make Mistake #1?

The main reason individuals trade without a plan is because of the allure that making money in the market can be quick and highly profitable. Many people just do not want to “waste” time planning to trade when they can just pull the trigger to buy and sell within minutes of opening a trading account.
This mind set is understandable. We are all guilty of tossing a product manual to the side and just try to build or use a new product without learning how it works, only to realize hours or days later we are reading the manual because we made some mistakes…

Let’s face it, with so many marketing ads hitting our inbox each day, and books talking about how traders are turning $10,000 into $1,000,000 in less than a year most novice traders will get fired up and start trading before they are truly ready.

Stock ,ETF and Futures Trading Strategies Brutal Truth You Don’t Want

As with any business or professional to be a success a great deal of hard work is typically involved. First of all it is not easy to build a successful trading plan. And then if you can do that, then you need to follow the plan, which is actually even harder. If you want to be a successful trader then you better be prepared to pay the price in terms of time and money.

How to Avoid Mistake #1 – There are only two ways around making this mistake

Avoidance Method 1 - The first is to devote as much time and energy needed to develop a detailed stock, ETF or futures trading strategy that addresses all of the key elements of a successful trading plan and system and still knowing that this will BOT guarantee your success.

The Key Elements That Must Be Mapped Out
- How much money can you afford to lose/trade without affecting your lifestyle?
- What market/s will you trade?
- What trading time frames works best for you?
- Day trade, swing trade, investing, manual order entry, automated trading system?
- What will your criteria’s be for entering a trade?
- What will your criteria’s be for exiting a trade with partial profits?
- What will your criteria’s be for getting stopped out of a trade gone bad?
- What time frame chart will use base the trend of the market on for you trades to follow?
- How will to manage positions by letting your profits run and by cutting losses?

Avoidance Method 2 – The second and fasted growing route traders and investors are going is to buy or subscribe to ETF Trading Strategies, or Futures Trading Strategies and fast track the process to hopefully make money trading with the least amount of effort, the lowest amount of downside risk for their capital and being 100% hands free.

Part I – Conclusion:

I hope this short report helps you see the light at the end of the very long tunnel of creating, building and following a trading plan. Without this first step/blueprint you are doomed from day one.
Keep your eyes open for part II where I will talk about trading with leverage, how to avoid it, and how to use it to generate massive gains if used correctly.

Chris Vermeulen – www.TheGoldAndOilGuy.com

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With the last major news item for 2013 less than 48 hours away, I thought I would share some insights as to what the S&P 500 Cash Index (SPX) options were pricing into the Federal Reserve’s monetary policy announcement due out Wednesday.

After the news is released and the week ends, it will be time for Santa Claus to come to Wall Street. While most people believe in the Santa Claus rally, what few understand is the bullish undertones that traditionally accompany a triple witching event.

This coming Friday, is a triple expiration. Equity options, index options, and futures contracts will be expiring this Friday. This event is traditionally known as “triple witching” and historically the quarterly expiration event ushers in serious bullishness.

According to Bank of America Merrill Lynch, “In the 31 years since the creation of equity index futures, the S&P500 has risen 74% of the time during this week. More recently, it has risen in ten of the past 12 years.” The chart shown below was posted on*zerohedge.com and was provided by Bank of America Merrill Lynch.



The chart above clearly demonstrates that the December triple witching event is statistically relevant for higher prices. What many call the “Santa Claus Rally” may have more to do with triple witching than whether Wall Street was naughty or nice.

The data above would demonstrate that unless the Federal Reserve either shocks the market or initiates a tapering of their quantitative easing program, we are likely to see some strong bullish price action in stocks going into the end of the year. Trend following quantitative trading strategies are a great way to automated your trading or investing.

While it can be argued as to whether or not a tapering has been fully priced in, what is of keen interest to me is whether SPX option analysis confirms a bullish disposition for future price action.

I want to be clear, that as an option trader I am constantly looking at probabilities for trade selection. I use a variety of credit spreads to take advantage of higher than normal implied volatility and use the passage of time as an additional profit engine. Additionally I use probabilities to help me select the option strikes that I am going to utilize for trade structures.

Based on the closing prices in the December Monthly (Exp. 12/20/13) S&P 500 Cash Index (SPX) on Monday December 16, 2013 the marketplace is pricing in a fairly tight short-term range. This is to be expected when time to expiration (in this case 4 days) is fairly short in duration. However, when we look at the standard deviation analysis from Monday’s close an interesting narrative is born.

The 1 standard deviation (68% probability) price range in SPX based on Monday’s close is around 1,770 – 1,800. The SPX option market is pricing in that there is a 68% chance that by the close Friday the SPX price will be in that range. However, the 2 standard deviation (90% Probability) price range tells a considerably different story.
The December Monthly SPX options show a 2 standard deviation range between 1,730 – 1,825. There is a 90% probability that at Friday’s close price will be in that range. However, when we look closer something interesting is revealed.

The Monday closing price for the SPX was 1,786.50. I would simply point out that the SPX options marketplace is saying that the risk of a larger move to the downside is more likely. Note that the 2 standard deviation upside price level is roughly 40 points higher than Monday’s closing price.

The 2 standard deviation downside range is more than 55 points lower. The marketplace is clearly pricing in that should a price shock take place, it will be much more devastating if prices move lower on the Federal Reserve’s statement. The price range is shown below on the SPX daily chart.



The fact that the option market is clearly favoring more downside potential does not mean that the marketplace’s reaction will force prices lower. The extra risk premium to the downside exists because the marketplace believes that there is more downside risk potential.

Unfortunately the SPX December monthly option chain cannot tell us much more at this point in time about future price action. However, some analysis provided by Bank of America Merrill Lynch solidifies my expectations that in the immediate short-term more downside is likely. However, a major bottom is likely to form which coincides with the December triple witching event. The chart below is courtesy of Bank of America Merrill Lynch.



The chart above demonstrates that the target range is somewhere between 1,745 and 1,775. In overnight futures trading on Sunday evening prices fell sharply, but Monday’s action caused prices to regain their footing. The recent lows in the SPX just barely made it into the range highlighted above. My guess is that one more pullback may occur before we see prices start moving higher due to triple witching and seasonality.

However, what is most important for readers to understand is that the risk should the Federal Reserve surprise the marketplace with a more hawkish action could be quite bearish in nature. A tapering announcement or a larger than anticipated tapering could cause the S&P 500 Index to react violently to the downside.

I will be the first to admit I have no idea what is going to happen, but I think hedging longs or taking some profits where available makes sense ahead of the Federal Reserve’s statement. While higher prices are more obvious based on seasonality and the binary triple witching event, a downside move could catch market participants off guard and strong short-term selling could result. Short-term risk is high!

Happy Trading!


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If you are getting a little bored of dealing with equities and would like a bit more of a challenge from the markets – and larger profits – then keep reading on. We want to look at the immense power of a futures trading system. If you work in the stock market, you will still have the high risk-high reward lifestyle that many stock traders have, but the advantage of futures trading and futures trading systems is that risk can be managed 24/7.

However, while the profits can be massive, so can the losses. So you need to be ready for virtually any outcome that could happen, and the best way to do this is with a futures trading system that has position and money management built into it. The best futures trading systems allows you stay away from poor decision making because they are automated in which removes emotional based trading. It also saves you from making any silly mistakes and miscalculations, as the entire futures system is automated and will execute futures strategies for you.

Futures trading is quite difficult and don’t think because you have bossed other markets, you can do the same here. A deep knowledge, power and real life experience is required to successfully trade these markets. However, once you find yourself in a position where you can take on and even absorb the larger risks that come with futures trading, you will be ready to make the most of this market.



Must Know Formula for Futures Trading System Development

The first thing that you need to concentrate on with a futures trading system is the specific market you want it to trade. Find something you are comfortable with – if you prefer to trade futures on indexes, you could start with the SP500, NASDAQ, DOW and Russell 2K. Or you could walk into the world of commodities like gold, oil and grains.

Once you have selected a market to trade, creating, building and testing your new automated futures trading system is important. Keep in mind there are many down falls to back testing and the further back you can go, the better. Most futures trading system developers only back test 6-12 months which to me is not enough data. You really should back test the strategy as far back as possible. If the data points you use in your futures trading system goes back 6 years, then build a system that works well during all of that time. If the data goes back 10 years… then even better. The farther back you go the more solid the futures trading system will be going forward.

Once you have successfully backtested the futures trading strategies its time to manually review each and every trade to confirm your system and testing was accurate. If not, adjust the system, backtesting criteria and repeat until you are happy with the results.

Some of the best futures trading systems are dynamic. This means they automatically adjust to market volatility, trend direction and manage positions on the fly without the futures trading system developer having to manually adjust strategies each week or month in which the market conditions change.


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This part two of a five part series of the four biggest mistakes traders and investors make which costs them time, money and usually self-confidence when trading stocks, ETF’s or futures trading strategies.

The Four Biggest Mistakes

1. Lack Of A Trading Plan – Part I
2. Using To Much Leverage
3. Failure to Control Risk
4. Lack Of Self-Discipline

Mistake # 2 – Using Too Much Leverage

With this section talking about leverage I am mainly going to be referring to futures trading because futures provides the most leverage. Anytime I talk about futures trading with someone, more times than not they either say they do not trade those things, or they tune out all together because in their mind its crazy and risky.
While there is no question that futures can be volatile at times, what individuals do not understand is that it’s not the volatility of the market that cause problems. It’s proven that most large cap big name stocks actually have more volatility than the majority of futures contract whether it’s the SP500, wheat, corn, gold, oil etc… The problem is the amount of leverage one used with their money.

Understanding Leverage

The difference between trading stocks and futures is the amount of capital required to enter a trade. While this could be a very long and detailed section with examples of leverage, I am going to keep things simple and short cause it’s really not that difficult.

Using an example of a trader which we will say his name is “Dave” who wants to trade the SP500 index with their risk capital here are two examples that show how leverage drastically changed the outcome of a position.

Dave has a $10,000 account, and wants to swing trade the SP500 index.
Option #1: He buys $5000 worth of the SP500 ETF (SPY). And if the SP500 rises in value by 3% Dave would see a $150 gain on his trade. This ETF has no leverage and follows the performance of the stock market.
Option #2: Dave decides to buy 1 ES mini futures contract which is the SP500 Index futures contract. Using the same numbers as the previous option, the SP500 rises in value just 3%. How much money did Dave make on this trade? He made a whopping $2,625 on the same move that the ETF did, how is that possible?
Let me explain, when you buy a non-leveraged ETF like the SPY with $5000, you are literally only trading with a $5000 investment. But with futures, when you buy one ES mini contract which is worth roughly $5000, you are actually controlling roughly $75,000. So think if it as 17.5x leverage on your money.
So that 3% gain in the stock market is based off a $75,000 investment which is how you get $2625 or a 52.5% return on your money.

Futures trading in my opinion is not for beginner or intermediate traders. The only way your money should be involved with futures is if you truly understand how the market move and have strict money management rules, or us a system that trades and managed positions for you. Remember, leverage is a double edge sword that can make you wealthy or broke quickly if not traded appropriately.

Why Do Traders Make Mistake #2?

The simple answer is mainly because of “ignorance”. I’m not saying most traders are ignorant, im just saying most individuals are unaware of the mount of leverage involved with futures trading or even the 2x and 3x leveraged ETF’s.

People who are used to putting up $10,000 of capital to buy $10,000 of stock/ETFs often assume they are doing the same with futures. Little do they know, that $10,000 position in futures is actually controlling $170,000 and in some cases up to $330,000 in capital.

Another problem is that most brokers will not tell you when you are over leveraged. Brokers make money on trade commission’s so it’s not too often they tell you to trade less and watch your leverage levels.

How to Avoid Mistake #2

A way in which you can try and void trading with too much risk is by having the properly account and position size. The key is to use just enough leverage on your money to generate above average returns while not exposing you to too much risk.

Of course trading with leverage come increased trading emotions. This is one of the reasons why automated futures trading systems have become so popular. Having system (mechanical trading system) can eliminate a vast majority of emotional and psychological issue us as humans struggle with.

Using To Much Leverage Trading Conclusion:

In short, if your trades will typically have a drawdown of say 20%, then you must be sure your account has enough money to be able to enter the same size position after lose 20% or your account. If you will not have enough money left to keep trading then either adjust your strategy or deposit more capital.

To get a solid feeling of how leverage works I suggest spending 20 minutes and play with a calculator and play with the potential gains or losses using various leveraged instruments like the 1x, 2x, 3x exchanged traded funds, and also futures contracts like the ES mini which is $12.50 per tick, or $50 per point.

Stay tuned for Part III – Failure to Control Risk

Chris Vermeulen

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When working in the world of a futures trading system, you can build up log-term capital gains in a short period of time. Your futures system, if traded properly, can earn you profits from 50-100% of what you started with in a short period of time (days or weeks)!

Using a, automated futures trading system immediately helps you do a few things – it helps you diversify your trading so that you can trade the same futures contract like the ES mini (emini) over and over again and a automated fashion. Futures trading systems is growing in terms of use and more individual traders are starting to demand automated futures trading systems by their brokers.



One of the most exciting parts about autotrading futures is that it can be done with a small amount of capital. Couple that with the extreme leverage they provide you can create, build and trade futures trading strategies that are based on compound trading. Gains are exponential with these strategies and is a large part of why so many people flock to futures trading systems.

Lastly, futures trading systems require next to no input from the user. You are still required to follow and track automated systems but in the most part you can focus on living a more normal life (not being glued to the computer screen each day.

Some technical and cost setbacks can set a future trading system developer back a few notches in terms of time and financial commitment .They require knowledge and specific computer software to make them work effectively. In most cases a dedicated server is required and these alone cost upwards of $100 – $200 per month. Add that to your automated trading software, data feeds and trading commissions, futures trading systems can get expensive quickly.

What is the Reputation of the Seller for your Futures Trading System?

Whoever is selling this automated futures trading system must have some experience in the game. Make sure they do before you buy – you could be buying from somebody who has never made a dime trading their own system.

The Logic – The logic of the system needs to be easy to understand and conform to how you think and feel the market should be traded. Being comfortable with a system that is trading your money is important for long term success.

The idea here isn’t to find a futures trading system that will get you the most money quickest, it is to find a system that can give you long-term sustainability and give you something to think about for years, not weeks.

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My new book “Technical Trading Mastery – 7 Steps To Win With Logic” is now available for you on my website Order Digital Version Here. In two months the paperback will be on Amazon.com Pre-Order on Amazon.

I am going to tell you about something really special. But first let me tell you about the book itself.

I have been planning to writing an investment/trading book for you for years and believe you will be really happy with it once you get it. Unlike most trading books that are like big encyclopedias full of the same concepts explained in a different way, my book is going to show you a new way to analyze the markets to find low risk trading and investing opportunities. My new style of analysis I call INNER-Market Analysis along with what has actually worked for me over the years are covered in detail.

You will find my process of knowing what to trade, my specific indicators and strategies in the book to be simple, unique, and exciting. Its everything I have used to manage my money and navigate big swings in the market with great success.
This is really logical way of trading not only makes sense but you can implement some of it to your trading literally overnight.

I wrote the book for you to be able to read it in two or three sittings and I share with you my story of becoming a trader which I’ve never shared before. I think that you will enjoy reading it as much as I did writing it for you.
To order the book go*here.

Special Bonus for Buying the Book

Starting in January I will be starting a monthly newsletter for investors. As you probably know monthly investment newsletters are the standard product in the investment advisory business and most of them range from $97 to $500 a year.

But, because this is my first book jam packed with the best of everything I know and use today, and the fact that I am extremely happy with how it turned out I’m just going to let you have a lifetime membership to my investment newsletter for free as a special bonus if you buy the book before Jan 1st.

In this monthly investing newsletter you will receive my big picture market analysis using all the indicators, tools, tips and techniques explained in the book. The only thing better than learning new trading techniques through a book is by seeing them done live in the market for you to follow.

I do run a business and will be selling this newsletter in a couple weeks, but I would rather use it as an incentive to get you to buy my book right now. We all know that building long-term relationships with clients/new trading buddies is all about providing the best value for the best price.

I can tell you that a few of my competitors heard what I am doing here and it’s creating some controversy with other investment writers and advisory services.

What they do not know that I like to offer people real value they can’t refuse – not through tricks – but by offering things that have so much value that at the price I offer them one would have to be a fool not to go for it.

Over the next 9 days I expect to sell a few thousand copies of my book to my 25,000+ followers. Here’s the catch and why I am offering this special to buy the digital version. I was only able to get 1000 books printed and shipped to Amazon with my publisher. It’s a long story, and the good news is there will be more books printed and shipped to the warehouse shortly after, but without the free lifetime newsletter membership offer. So with the paperback book being limited I wanted to extend my book in a digital version on my website at 50% off the retail price + plus the lifetime membership to my new investing newsletter.

I believe that those who benefit the most in life and business are those that truly help as many people as they can. And for me that comes from providing people with great information for the price they pay and also by giving people high quality usable free information too.

I’ve been online since 2001 and have a big following due to this philosophy.

Also I truly believe that this book will help everyone who reads it in some way, shape, or form. I cover a lot of key areas of trading we all must focus on improving including myself.

How to Get Your Special Bonus Free

All you have to do is go to my website Here To Buy The Book and I will have your email for sending you the monthly investing newsletter.

You can also pre-order the paperback from Amazon.com to get one of the first 1000 books with the free investing newsletter information on the back page. Pre-Order At Amazon.com

Now I’m only going to offer this bonus to you for the next few days, because I do plan on selling this newsletter so I have to stop just giving it away at some point.

So go ahead and order the book today.
Chris Vermeulen

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When talking about futures trading systems or magical formula that produces profitable result, it’s important to remember that there is basically no such thing as a fool proof plan. By using the example of the “Holy Grail” it is safe to say that in the world of futures trading systems, there will never be a 100% winning system or one that will generate profits in all market conditions.

In history, the Holy Grail was never actually located – was it? Well, in comparison, there is no holy grail of automated futures trading systems either. Sadly, if a system like that existed we would all be making huge amounts of money, wouldn’t we?

If you look back on the best automated investing systems and futures trading systems in particular that have been used in the past, then one thing they all have in common is not their success but their failure. Most successful investor has at one stage suffered big losses – it is just a part of the investing game.



So is there a fool proof futures trading system out there?

Trading something known as an e-mini (ES Futures) is a brilliant way to get involved in the futures markets. E-mini trading is a lot less risky and does not offer you quite so many different avenues for failure if you have the proper futures trading strategies and systems in place.

Reducing downside risk is very important in the futures market because of the leverage involved. Remember that greed is a bad thing, a really bad thing, so making the decision to earn a little less to ensure you don’t lose more is very important. A simple strategy is to trade multiple futures contracts at the same time. This allows you to quickly take profits on one contract as soon as price starts moving in your favour and allows your other contract to mature with the larger underlying trend.

So while an e-mini trading systems do not offer you 100% success rates, they can help you cut back the risk while keeping the reward fairly high. Let’s face it, 24/7 trading hours allow us as futures traders to manage risk by avoiding price gaps which happen every day for those trading ETFs and stocks.
The best futures trading systems won’t take on too many markets and contracts. Focusing your attention on just a few different markets and really put your heart and soul into those strategies and systems to get the best results possible.

ITS BETTER TO BE REALLY GOOD AT ONE THING THAN IT IS TO BE GOOD AT A BUNCH!


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