Futures markets give you the ability to buy or sell a commodity, currency, or index at a future contract price. These contracts are set to expire at a future date and are generally much larger and more complicated than the exchange of stocks. The futures exchange is measured in ticks rather than dollars and profit/loss is determined by the value of each tick movement. Because futures markets use these tick values, large sums of money can move between just a few dollars in price.
Futures Trading Strategies
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 futures strategies based on data triggers and market movement each day that focus on sentiment and price. 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 strategies 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.
This equity curve shows our futures trading strategies with a starting balance of $50,000 in 2000. As of December 2020, we’re up to $1.1 million. Learning to manage your money now will pay big in the long run. Sign up now to get started for free.
Our futures market 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.