by UIC Digital Collections

by tonyhall

by Wally Hartshorn

To get a computerized system edge, you need to figure out the basic human trading weaknesses and include them in your software. Anyone can buy a trading system these days, but it will have little value unless it is unique and different from the crowd. Here’s some easy-to-understand ideas I use that add in the human fears!

These days it’s very easy to put together a computerized commodity trading system. The average software program will literally write and optimize itself. You can buy a “black box” that will give you wonderful claimed performance. But what does that tell you? If anyone can do it, then it’s of little value and uniqueness in the market and will become a loser over time. To get an edge, you need to figure out the human trading weaknesses and code them into your software. Here’s an easy-to-understand program outline I use myself that does just that!

I’ve talked much about discretionary, intuitive e-mini futures trading. You might think that I have no use for automated computerized trading systems. But that’s not true. I focused on the hardest part first (discretionary trading) to get you headed in the right direction. I didn’t want you to get lazy and depend fully on a computer. Let’s now talk about how automated computerized trading systems can be very helpful to your e-mini and other futures trading. The following applies to day trading e-mini futures where risk can be closely controlled.

The first concept to understand is that GIGO, (garbage-in, garbage-out) certainly holds true for computerized trading systems. It’s easy to design a system that uses all the canned moving averages, MACD, stochastics , etc, etc, on and on. Everybody has access to these programs and you can be sure there are lots in use every day. Over time this stuff is break-even, a wash at best most of the time.

So why did I take so much time talking about discretionary e-mini futures trading? Why did I stress we need to discover the unique trading patterns exhibited by a market? It’s because you want to program your computer to trade as closely to your perfect self as possible. You want to look at your computer’s buy and sell signals and be able to say in hindsight, you, too, would have taken these trades. These trades should be based on your real world experiences observing market patterns. Programming in the human part of the concept is not easy. In fact, it is very difficult to do.

I got the inspiration to write this course lesson because today my e-mini futures “trading companion” (my software program) mimicked my trading almost perfectly. In fact it did much better than I could have done today. It took trades that I was second guessing and afraid of. It was so masterful today it was humbling. It made (on paper) seven profitable trades in a row. Not all days are this way, of course. Many days this program will have bad days, just like me. But today it was “King For a Day.” Remember that the markets are always changing.

To get “good in – good out” (GIGO- modified) for your e-mini futures software program you FIRST need to find the patterns that are currently working in the market by simply observing and logging. Then program them into your software so that you can almost anticipate when the program will trigger a signal. You need to know and understand how the program works or you will not have the confidence to always pull the trigger using its signals. This is the first step.

You know step one is correct when you get a strange and gratifying feeling seeing the trading signals go off and the market immediately reacts favorably in real time. This is especially dynamic when the trading system is a counter-trend method that looks to buy panics at lows and sell panics at highs.

The second step is to add a little “salt.” Start thinking about the human side of the software programming. We’ll talk about this next!

Part Two of Four Parts – Next

There is substantial risk of loss trading futures and options and may not be suitable for all types of investors. Only risk capital should be used.

By: Thomas Cathey

About the Author:

The futures trading market is one in which commodities are traded. This commodity trading has proven successful and profitable for many traders, but that doesn’t necessarily mean that it will be the same for you. Although the trading of futures commodities can be considered a risky business, it is a risk that is definitely worth taking. In fact, did you know that you can give commodity trading a try without risking any of your hard earned money? You can and you can do this with commodities paper trading.

Commodities paper trading is a practice that involves using “fake,” or “imaginary,” money. If you decide to try commodities paper trading, you will need to find a commodity trading broker who offers the program. When finding a commodities paper trading program to try, you are advised to search for one that is free. Many commodity trading brokers allow you to try their commodities paper trading program free of charge for a specific period of time, which is often thirty days. The decision as to whether or not you want to pay for this practice is yours to make, but you are advised against paying for something that you can easily find for free.

Although it is nice to know that commodities paper trading exists, there are many hopeful traders who wonder why they should take the time to try it. If you are one of those individuals, you should know that there are number of benefits to commodities paper trading. One of those benefits is giving you and idea of what may come, particularly in the way of profits. Commodities paper trading enables you to make real-time commodity trades with “fake,” or “imaginary,” money. Despite not actually paying for your trades, you are acquiring them. This is what enables you to determine if you can make a profit with commodities paper trading.

What is even more amazing is what happens if you find yourself not making a profit with commodities paper trading. As you likely already know, there are many who are able to profit from commodity trading, but there are others who end up losing money. When doing commodities paper trading no real money is involved. This is what enables you to “lose,” money, but learn from your mistakes. That is why commodities paper trading is sometimes referred to as a training program. By first opting for commodities paper trading, you are able to learn helpful techniques, as well as certain techniques that you should avoid in the future. It is also important to mention that many commodities paper trading programs are completed with the assistance of a commodities trading broker, who is at your disposal.

For more information on commodities paper trading, like the real time market features that you will have access to, as well as the additional benefits of commodities paper trading, you will need to find a commodities trading broker that has the program available for taking. As a reminder, try and find a commodities paper trading program from a well-known commodity broker, one that can assist you when you decide to start reading for real.

By: Ulysses Faust

About the Author:

Marky Mark asked:


1.35 to 1.5 % DAILY! with 60% going in your pocket and 40% going to the house.

Is this possible?
Based on anywhere between 300 to 1000 scalping trades per day with no more than 10% of your money at risk with a stop-loss of 2.5%
No of course, one would have to have a computer server and highly advanced program written specifically to take advantage of these 100s of tiny increases from different commodities throughout the day.