What makes a perfect futures trading system?

In the stock and futures industry, the name of the trading system is very confusing, not only the general investors and the general public are unknown, including some industry insiders who often talk about the trading system, or even describe it, but in fact they don't know what it is. In particular, some software and dealers deliberately exaggerate the performance of the product for the purpose of promotion, blurring the essential difference between the trading system and the general market software or the auxiliary analysis software of the market, which exacerbates this confusion and is not conducive to the research, communication and development of the trading system. Therefore, the author believes that it is necessary to discuss the concept and characteristics of the stock and futures trading system in order to set the record straight.

What is a futures trading system?

What is a futures trading system? From a simple conceptual perspective, a trading system is a three-dimensional system of systematic trading thinking. Systematic trading thinking is a concept, which is reflected in the overall observation of price movement and the continuous observation of time in the analysis of market judgment, and the comprehensive embodiment of the three elements of trading objects, trading capital and trading investors in the decision-making characteristics. But it must be pointed out that since the futures trading system is the materialization of systematic trading thinking, it is by no means comparable to any simple market software or market auxiliary analysis software currently on the market.

Whether a novice or a veteran, they always use a variety of different methods, systems, and strategies to make profits by speculating on the price fluctuations of products. Every futures investor claims that his means are the most sophisticated. But in fact, every futures trading system has its strengths and weaknesses. The key to winning the speculative market is to develop a simple futures trading system, strictly abide by the trading rules, and control your emotions.

Classification of futures trading systems

Traders generally choose to use two trading systems: A futures price following system and B futures price predictive system. Let's briefly introduce them.

1. Price following system

Follow the market with momentum indicators, oscillators, and averaging methods. The easiest way to do this is to find a suitable moving average and trade in the direction indicated. You can also add other indicators such as MACD, Stochastic, RSI, Boolean, etc. Once your futures trading system gives a trading signal, feel confident to go for it.

2. Price predictive systems

It is usually a long-term futures trading system, which is used for futures trading hours or longer. It involves predicting the trend of the entire futures market over a long time frame, and then sucking in the dips and distributing the highs. Horizons, trend lines, golden sections, and moving averages are some commonly used indicators. These indicators can determine the direction of the trade, determine the appropriate intervention level, determine the appropriate exit level, and you can get busy with other things. This form of futures trading requires investors to have certain futures trading experience and futures trading skills. Fortunately, these can be gradually learned in the actual trading of the futures market.

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