Does anyone use any of these systems? Are they reliable? Any thoughts or experinces are much appreciated.
The first system developed and sold by Futures Truth was called "Universal" with a longer-term variant called "Universal LT". It is tracked in their newsletters and you can see its performance compared to three hundred other vendor-sold systems. It's usually not in the top 20% (the newsletter recomputes the rankings monthly) of all systems tracked, and it has never made their list of "Top 10 Trading Systems of All Time" (which they recompute annually). Universal, despite its name, has a couple of parameters that are different for each futures market traded. The user's manual contains a table roughly similar to this: Australian Dollar: Param1=6, Param2=15 Corn: Param1=11, Param2=4 Coffee: do not trade Coffee using the Universal system Feeder Cattle: Param1=6, Param2=100 Gold: Param1=8, Param2=0 Heating Oil: Param1=15, Param2=15 etc.
I like the John Clayburg systems. There's an interview with him (under Articles), and his systems have performed consistently over time. The RC Trading systems have interesting performance as well (but you will have to pick and choose between them). Best, Jimmy
Their analysis of the systems is independent and fair. They do a few thing you should know when you are evaluating their reports. They rank systems based on 3 times margin as required account size. This means that if you have two systems , one with a lower drawdown than the other , but they both make the same profit, they will be even in the rankings. They show you drawdown numbers in detail reports so you can judge for yourself, when you are deciding between systems. They rank over 500+ systems, including systems like the Turtles. You will see that the original Turtle system has not done well, over the last few years and I don't think is in the top 20% any longer. If you did not have a service like Future Truth , you would not know that fact. Futures Truth has also started adding some articles , other features and is beginning to grow more into a magazine.
What exactly did you have in mind John? Your questions are very general. Are you looking for a S&P, Bond, Commodities, etc., type of system? How much margin are we working with? (for these autotraders you need at least, what, 10K per contract?). Do you want to try scalping, or position or both? Best, Jimmy
The reason why I ask is because I have trading experience but never used a systematic plan. I just did some scalping based on short term momentum which ultimately didnt work anymore. I am considering becoming a CTA and am deciding if I should build my own system or use a system created by somebody else with decent long term results. The two considerations I am thinking about is: Running individual commodity systems independantly such as a Bonds, FX and equity or running a single strategy that trades all the markets within the same program. Anyone have any thoughts about this idea? Murray, I am considering your software for the turtle program or trading blox.
Generally, I would only think of putting together a mechanical system once you have proven that you could produce consistent results as a discretionary trader, if you haven't done it manually, then don't try to build a system starting from scratch, pull one or two off the shelf with good long-term track records that trades multiple non-correlated markets and expouse at least two contrary strategies (trend following/reversal or breakout/breakout failure as examples). I would start with the pairs on one market and build from there. Best, Jimmy
Thanks Jimmy, I am thinking of running non correlated systems in the hopes of smoothing out the drawdowns and to produce consistent (not looking for 100% a year) returns.
Most of the larger traders with good long term track records use a systematic approach. The best approach is to trade multiple systems and markets. You should trade a trend following system and combine it with interest rate systems based on intermarket analysis and stock index systems. This type of diversity gives you the best chance of success. In terms of building your own or buying. As long as you buy fully disclosed systems you can do both. If you plan to manage money you really need at least your own versions of a suite of systems. If you really want to design a successful trading program, then TradersStudio is your best bet for many reasons. First since you are just starting systematic trading , things like charts and indicators will be more important to you than pure system traders. TradersStudio charting is much more advance than Trading Blox, we have indicators, custom indicators, color bars, mark bars, alerts,and expert advisors. In addition we have drawing tools, trend lines, gann fans ect. You get everything Trading Blox can do and more for 1/6th the price, because our goal is to be the standard platform. You can even use existing EasyLanguage code you can find. In terms of Systems packaged we have two different ones TradersStudio +My Bonus System Pack for $799.00. This includes the Turtle system , My adaptive Turtle which outperforms the standard Turtle system by 40%. A Bond system ,which has made money for over eight years since I released it and a market timing system based on a concept I have used since the mid 1990's which still works today. Here is the link to that: http://www.tradersstudio.com/Produc...ID/5/psnavcmd/CatalogItemDetails/Default.aspx The other package contains all this and Trend Harmony, which outperforms the Turtle system by 100%!. Yes it makes double the profits. You get all the above , plus Trend Harmony for $1299.00 Here is the link to that: http://www.tradersstudio.com/Produc...ID/5/psnavcmd/CatalogItemDetails/Default.aspx