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SYSTEM TRADING

Seattle-based commodity futures trading firm working with investors and their advisors interested in diversifying their existing portfolio

What is a trading system?


A trading system is a tool used by traders that uses objective entry and exit criteria based on parameters that have been determined by historical testing on quantifiable data. Systems are run on computers or servers and linked to an exchange for trading. Developers will send systems revisions (updates) as they see fit. Revisions can be instant messaged to Striker as developers modify stop orders as well.




Why should I trade a system?


Trading the futures and equity markets using a trading system provides the discipline to overcome the fear and greed that in many cases paralyzes a trader and prevent making timely decisions. Each order placed is governed by a pre-determined set of rules that does not deviate based on anything other than market action.




What should I consider?


Like all kinds of tools, trading systems if not used properly, can be dangerous to the trader's economic health. The trader should evaluate tolerance to high-risk futures trading, risk capital and the ability to withstand equity draw-down as well as the cost in terms of both time and money to trade in the futures markets.




How do I know if the system is any good?


One of the key elements of a trading system is the ability to be back-test for hypothetical performance using quantifiable data. Recognizing that hypothetical results have not been market-tested and that they are usually provided by the system vendor who is in the business of selling trading systems, the trader can obtain some idea as to the trading systems characteristics. However, the only true test of a system is to see how it performs in actual trading where market slippage and trading cost are a part of the record. As a result, there can be a significant difference between hypothetical and actual results and neither is any guarantee of future trading results.




How much money do I need?


The minimum deposit to open a futures trading account varies by the broker. In addition, the prospective trader should only consider opening a futures account when the trader has sufficient risk capital, due to the leverage in futures trading.




How do I get started?


The first step is for the trader to talk to one of Striker's "no-conflict" brokers in order to understand the risk as well as the rewards of futures trading using trading systems. If the trader is comfortable with the program then the next step is to open a trading account and select the trading system(s) that best fit the trader's personal risk tolerances and trading objectives. If the trader is not comfortable in operating the selected trading system(s), Striker professional brokers will "auto-trade" the system(s) in the traders account for the traders benefit.




What are the risks?


Any one system may be subject to market specific, system specific, or complex specific risk. By trading multiple systems across different markets, one may reduce market specific and complex specific risk. By trading systems with different entry and exit strategies, the trader may reduce system specific risk. However, the risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated tests of strategies, is not necessarily indicative of future results.





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Carefully consider whether futures and options are suitable for you in light of your circumstances, knowledge, and financial resources; as they involve significant risk.