Futures give you the ability to buy or sell a commodity, currency, or index at a future contract price. The buyer or seller of a contract is responsible to receive or provide the underlying asset at the contract expiration date. Some contracts expire monthly or quarterly.
Our models trade the most active contracts for each underlying asset with an average hold time varying between several days to weeks. These models tend to turn more quickly and are much more risky since they trade on margin. Trading on margin requires a trader to put up only a fraction of the overall contract value. For example, buying one ES contract might cost $15,000 in margin, you would have $150,000 in exposure (ex: each ES contract has a multiplier of 50. One ES point = $50 in actual price movement). Which may sound nice, however, just a 1% drawdown on that contract would equate to a $1,500 loss. These contracts require a larger account size due to the amount of leverage the futures contracts provide.
We have developed proprietary models based on data triggers and market movement each day. At the end of each trading session, we crunch the data and wait for our signals to trigger a buy or sell if the market is right. There is no guessing, no subjectivity, and no shot in the dark.
We backtest all our models to prove successful performance before putting them in to play with current markets. It should be said: trading is very risky! Even though we are confident in our models and triggers, no trade is 100% guaranteed. We will win some and we will lose some. Based on our backtesting and expertise, we feel our winners will outperform our losers and make us all happy investors.
Our futures models follow commodities such as corn, oil, cotton and cattle to name a few. Currencies, precious metals and index futures are also some of our favorites.