What is a trading system?
A trading system is a tool used by traders that uses objective entry and exit
criteria based on parameters that have been determined by historical testing
on quantifiable data. Systems are run on computers or servers and linked to an
exchange for trading. Developers will send systems revisions (updates) as they
see fit.
Why should I trade a system?
Trading the futures markets using a trading system provides the discipline to
overcome the fear and greed that in many cases paralyzes a trader and prevent
making timely decisions. Each order placed is governed by a pre-determined set
of rules that does not deviate based on anything other than market action.
What should I consider?
Like all kinds of tools, trading systems if not used properly, can be dangerous to the trader's economic health. The trader should evaluate tolerance to high-risk futures trading, risk capital and the ability to withstand equity draw-down as well as the cost in terms of both time and money to trade in the futures markets.
How do I know if the system is any good?
One of the key elements of a trading system is the ability for a trading system
to hold up over time. We encourage clients to take their time and study results
before they open a trading account. The only true test of a system is to see
how it performs in actual trading where market slippage and trading cost are
a part of the record.
How much money do I need?
The minimum deposit to open a futures trading account varies by the broker. In addition, the prospective trader should only consider opening a futures account when the trader has sufficient risk capital, due to the leverage in futures trading.
How do I get started?
The first step is for the trader to talk to Oahu Capital Group in
order to understand the risk as well as the rewards of futures trading using
trading
systems.
If
the
trader
is comfortable with the program then the next step is to open a trading account
and select the trading system(s) that best fit the trader's personal risk tolerances
and trading objectives. If the trader is not comfortable in operating the selected
trading system(s), the trading system(s) will be "auto-traded" in the traders account for the traders benefit.
The group executing the systems
is not permitted
to
trade
futures,
so our
focus is always on providing the trader the very best service.
What are the Risks?
Any one system may be subject to market specific, system specific, or complex
specific risk. By trading multiple systems across
different markets, one may reduce market specific and complex specific risk.
By trading systems with different entry and exit strategies, the trader may reduce
system specific risk. However, the risk of trading can be substantial and each
investor and/or trader must consider whether this is a suitable investment. Past
performance is not necessarily indicative of future results.
Disclaimer The risk of trading can be substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance is not necessarily indicative of future results.
Futures Trading Disclaimer:
Transactions in securities futures, commodity and index futures and options on
futures carry a high degree of risk. The amount of initial margin is small relative
to the value of the futures contract, meaning that transactions are heavily "leveraged".
A relatively small market movement will have a proportionately larger impact
on the funds you have deposited or will have to deposit: this may work against
you as well as for you. You may sustain a total loss of initial margin funds
and any additional funds deposited with the clearing firm to maintain your position.
If the market moves against your position or margin levels are increased, you
may be called upon to pay substantial additional funds on short notice to maintain
your position. If you fail to comply with a request for additional funds within
the time prescribed, your position may be liquidated at a loss and you will be
liable for any resulting deficit.