How does an Automated Trading System work?
Answer: In Short, it is a computer using algorithmic code that has a method of trading coded into the algorithms that will study a market or index with that method of trading. Once the indicators show that it has the best advantage to profit, it will execute that trade and monitor that trade against set stops, profit stops, trailing stops that are coded into its Risk Management Application (RMA) and all this with Zero Human Involvement. And if you really want all the details, you could ever find, we've got it for you...
Do I have to execute the trades?
Answer: No, the system's are completely Automated and require none of your time to trade. The system's trades for you.
Do I have to install any software?
Answer: No, these systems are established at set Brokerage Firms and FCM, Clearing Firms. You will not receive any software. These systems are fully automated and connected directly to the exchanges, so therefor requires none of your time to download any software, and also requires none of your time to trade. It is all done for you.
Can I execute the trades myself?
Answer: No, it is designed to eliminate human error and involvement and executes the trades alone.
Can I use my current broker account?
Answer: No, you will need to be assigned to an IB, Broker, were the systems/white label are established to insure accuracy and connection to the FCM Clearing firms, which allows the systems to be connected directly to the exchanges.
Can I use my IRA?
Answer: Yes, all our systems are approved by the Clearing Firms to trade thru an IRA, you can do what’s called a “Partial ROLL OVER” where you can roll anything up to a third of your IRA, with no penalties, and still remains taxed differed.
Can I withdraw money from my account?
Answer: Yes, you can withdraw and or deposit money at any time. It is your own account in your own name, but you must leave the minimum trading capitol requirement in for a system to be able to continue trading.
Can I do this on my own?
Answer: Yes, but we do not recommend it. Over the last 2 decades the failure rate is over "97%" for those who try this on their own without the proper guidance. Even the most experience trader fail as it takes a DEEP EXPERIENCE to know how to trade in Automated Trading via the right system at the right time, diversifying and getting out of a system as the markets change to avoid big drawdowns. Over 80% of all the stock, futures and all global trading markets are traded by Automated Trading Systems/Algo Trading, but most of this is Institutional and Professionals who have HIGH experience and or by having proper guidance by those who do. Platinum Trading Solutions is the Founding and Longest Standing Firm for the individual Investor, and we have been doing this for over 16 years with the GREATEST SUCCESS in Automated Trading for the Individual Investor, let us help you out!
How many systems should I be diversified into?
Answer: We suggest at the very least 2 or 3 systems but really at least 5 to 7 systems are best, of course depending on the Investors trading capital availability. Being in only 1 system can work but can be very risky because market changes bring drawdowns and usually and eventually results in loss. We have found no success in being in only 1 system in the long run. The reason for this is being diversified in multiple systems helps reduce the drawdown percentage and creates a lower Correlation with different results at different times in being in different systems that are in different indexes or markets, which helps to create a smoother yield over time. The more systems traded under the right guidance in proper diversification, the better the chance in reducing the drawdown percentage on the total trading capital split into different systems, thus driving down the correlation and effectively creating that much desired smoother and higher yield over time. Another example is Accounts with over 500k to 1M or more are suggested to be diversified into at least 12 systems or more including systems that are already diversified into multiple markets as well as indexes and has shown to successfully reduce the drawdown percentage dramatically along with the correlation being reduced to the negative in diversifying the client properly, thus creating a much higher return potential and an even smoother yield for almost all market conditions for the long run. We have helped the small investor from get from 2 systems into trading 7 systems and helped the bigger investor start THE RIGHT WAY, right away! We can help YOU!
Can I, or should trade more than one contract in my account with the system or system's I am trading?
Answer: Yes, if you are already diversified in multiple systems. If you are in just one system we strongly suggest that you DO NOT, because, yes 2 contracts double the wins, but also doubles the loss. We at Platinum Trading Solutions recommend trading in a minimum of 5 systems, but preferably 7 systems, before we have our clients increasing contracts in their account per system. This also depends on the type of systems a client may be trading.
What are the Advantages of Automated Trading?
Answer: Minimizes Emotion, as orders are processed automatically once the pre-set rules are satisfied, emotional mistakes are minimized. It also helps traders to stay disciplined when the market is highly volatile.
Ability to Back test, before using the automated trading or the underlying algorithm, traders can evaluate their rules using the old data. It allows the traders to minimize potential mistakes and determine the expected returns.
Achieves Consistency, as orders are processed only when the pre-set rules are satisfied and traders only trade by plan, it helps the traders achieve consistency.
Improved Order Entry Speed, as computers process the orders as soon as the pre-set rules are met, it achieves higher order entry speed which is extremely beneficial in the current market where market conditions can change very rapidly.
Diversifies Trading. Automated trading systems allow users to simultaneously trade in multiple accounts which allows them to diversify their portfolio. Diversifying the portfolio allows the users to minimize their risks by spreading the risk over various instruments.
What are the Disadvantages of Automated Trading Systems?
Answer: Mechanical Failures, even though the underlying algorithm can perform well in the live market, an internet connection malfunction could lead to a failure.
Monitoring, although the computer is processing the orders, it still needs to be monitored because it is susceptible to technology failures as shown above.
Over-Optimization, an algorithm that performs very well on back testing could end up performing very poorly in the live market. Good performance on back testing could lead to overly optimistic expectations from the traders which could lead to big failures. But, Platinum Trading Solutions eliminates any type of Back Testing to judge any system performance and only gages the performance of any system upon ACTUAL RESULTS from accounts trading with ACTUAL MONEY ONLY!
How much money do I need to get started?
Answer: You will need our recommended minimums to be able to trade which will differ from system to system. You will probably need at least 20k at the very minimum, but really you should have 50k or more RISK CAPITAL to invest with!
Are these Hypothetical Results?
Answer: NO, we are an ANTI HYPOTETICAL Firm and only show NET PROFIT RESULTS/RETURNS from actual trading accounts trading with Money!
Are the results shown from your systems Actual Results trading with Money?
Answer: Yes, all system we show are Actual NET PROFIT RETURNS from accounts trading with money!
What makes you different from everyone else?
Answer: Platinum Trading Solutions is the longest standing and founding firm, and the LEADER in the world of Automated Trading Systems as a Registered CTA with the CFTC. We are an ANTI-Hypothetical Firm, that shows Actual Results from Live Accounts trading with money. Almost all other companies out there in the world of automated trading are HYPOTHETICAL, just view the disclosure at the bottom of their web pages. You will notice WE DO NOT! We have more inside experience and hands on understanding than any other firm in the industry, with over 16 years of proof of success. We have an actual method and path that we take our clients down over the years called our 5 GOLDEN RULES (see our why use an automated trading system, ORANGE LINK BELOW, and then scroll down on that page until you see our "5 Golden Rules"), and we have more systems, 100's of systems available to us at any given time, while others do not, and AGAIN Actual Results ONLY! So, if you want to do this the right way, then you found your home at Platinum Trading Solutions. There is not and will never be a Firm like Platinum Trading Solutions! We actually care about our clients and put them FIRST and are always in vison of the LONG RUN! See what our clients say, and you will see our 5 Star, A+ Rating as the Highest Rated firm in the industry in Automated Trading for over 16 YEARS! A Firm that actually has proven to care for their CLIENT FIRST! Who Does that?
Also See Our - Why use an Automated Trading System (ATS)
Check out what our clients are saying with our 5 stars Rating and you should get the point, and then give us a call! We are easy to talk to and we can answer any question you might have!
Why should I try this out?
Answer: Because you want to be successful in this. Because you want the right support and guidance. This is what Platinum Trading Solutions has proven to be able to do. Bottom Line your best chance is here! See what our clients have said all these years by clicking on our 5-stars rating, and you will see why you should try this out!
What is a Commodity Trading Advisor (CTA)?
What is a Commodity Trading Advisor (CTA)?
Managed Futures and Automated Trading Systems are operated by licensed Commodity Trading Advisors, or CTAs, who are regulated in the United States by the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA). Commodity trading advisors (CTAs) are asset managers who follow a set of systematic investment strategies. Essentially, they are the operators of managed futures accounts and are directly responsible for the actual trading. They originally operated predominantly in commodities markets, but today invest in any liquid futures market. There are approximately a 1000 CTAs registered the Commodities Futures Trading Commission (CFTC) and with the National Futures Association (NFA), the self-regulatory organization for futures and futures options markets. Because of the direct involvement of the CTA in manage futures, choosing the appropriate CTA may be critical in performance and or diversification characteristics.
The two major types of advisors are technical traders and fundamental traders. Technical traders may use computer software programs to follow price trends and perform quantitative analysis. Fundamental traders forecast prices by analysis of supply and demand factors and other market information. Some advisors may use a combination of these two techniques for their managed futures programs.
Some CTAs are compensated on a performance fee basis, usually 15% to 30% of profits. Other CTAs are compensated by charging a per trade cost whenever the account or fund trades. Most CTAs also charge a management fee per year, usually between 1% to 2% of the account size. Other CTA's charge what is called a CTA fee, upfront and or monthly.
CTAs are a unique way to have the proper guidance with managed Futures Trading, included Automated Trading Systems which have become a major influence in today's markets in both commodity and index trading.
For more information and or questions ask a CTA yourself by contacting us at Platinum Trading Solutions, the leading CTA in Automated Trading.