Algorithmic, systematic, systems, or simply “algo” trading strategies use computerized modeling to buy and sell futures contracts based on pre-defined rules and conditions. In theory, an algorithm can trade in nearly any financial market and employ any desired type of strategy, whether it’s trend following, counter trend, mean reversion, volatility.
Emotional decision making is often a trader’s worst enemy (greed, fear, disbelief, etc.) System trading removes this emotional element from trading. In fact, many top-performing Trading Advisors now rely heavily upon computerized trading system software.
Algorithmic trading systems make it easier for traders to find trends in more markets than humanly possible. Traders can spread their risk across various markets and sectors to find opportunities in trends that might be overlooked otherwise.
Algorithmic trading strategies have the ability to trade while you’re sleeping. No more missing out on markets just because you aren’t awake to trade them.
Futures trading Systems generally require a lower capital investment amount versus a managed account with a CTA or fund. This allows investors to get started at a level they are comfortable with.