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Why Use Automated Futures Trading Systems?

Published 12/16/2013, 12:17 AM

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.
S&P 500 E-Mini-Futures
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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