Futures Trading Systems
Looking at the February issue of Futures magazine they have an article about futures trading systems.
They list the top 10 futures trading systems and they have charts of the profits that they have made.
Looking at the charts it is obvious why there is a huge problem with these systems.
The first one, the Aberration trading system costs $2,295 and if you look at the chart was showing a profit around the start of 2003 of $667,000 not too bad… But when you really look at the chart that goes to 2006 it is now below that by maybe $45,000.
So you pay $2,295 for a system at the start of 2003 and you trade it for 3 years and you lose $45,000. That’s not exactly the kind of system I was looking for.
Ok, I look at the 2nd one Basis II it was around $826,000 in the middle of 2002 and now in the last few months had just returned to that point again.
So 3.5 years and you break even. I guess that’s better than the first one but still not exactly what I am looking for.
They need to add one that is the – Put Your Money In A CD At The Bank System… and if they can’t beat that then why bother taking the risk of trading.
I guess your futures broker would be happy if you do a lot of trades and rack up some huge commissions, then someone is making some money at it.
It does not say that any commissions were figured into the charts, so you can assume that none were taken out.
It looks like with these trading systems they were only doing 150 to 200 trades a year so if you were paying an average of $15 per trade it would be 200 trades x $15 x 2 (buy and sell) so you could count on losing another $6000.
Of course that does not count slippage, better tack on another $10,000 in losses.
They list the top 10 futures trading systems and they have charts of the profits that they have made.
Looking at the charts it is obvious why there is a huge problem with these systems.
The first one, the Aberration trading system costs $2,295 and if you look at the chart was showing a profit around the start of 2003 of $667,000 not too bad… But when you really look at the chart that goes to 2006 it is now below that by maybe $45,000.
So you pay $2,295 for a system at the start of 2003 and you trade it for 3 years and you lose $45,000. That’s not exactly the kind of system I was looking for.
Ok, I look at the 2nd one Basis II it was around $826,000 in the middle of 2002 and now in the last few months had just returned to that point again.
So 3.5 years and you break even. I guess that’s better than the first one but still not exactly what I am looking for.
They need to add one that is the – Put Your Money In A CD At The Bank System… and if they can’t beat that then why bother taking the risk of trading.
I guess your futures broker would be happy if you do a lot of trades and rack up some huge commissions, then someone is making some money at it.
It does not say that any commissions were figured into the charts, so you can assume that none were taken out.
It looks like with these trading systems they were only doing 150 to 200 trades a year so if you were paying an average of $15 per trade it would be 200 trades x $15 x 2 (buy and sell) so you could count on losing another $6000.
Of course that does not count slippage, better tack on another $10,000 in losses.
