|
Trend Following Equals Low Trading Costs |
|
|
|
Trend following trading systems
Very simply, attempt to identify established trends and ride them as long as possible. Using trend following trading systems is not an attempt to predict market behavior, it is more of a discipline. Trend following software usually initiates a long position on strength and gets short on weakness. By definition, these systems usually don’t exit a trade until the trend has reversed according to their definition.
Each trend following system is obviously slightly different, but they have the same goal: To profit from the large trends and mega-moves that occur regularly in a wide array of markets. Keep in mind, to obtain mega-moves often times systems go through a series of small losses. Worldwide Futures Systems evaluates the entry, and more importantly, the exit strategy of each system we test. The entry is the easy part, but identifying when a trend is officially over can be very difficult. We make sure that a trading system is not optimized to look good on just a few markets or a certain time frame. Responsible, robust exit strategies are what separate the long-lasting, viable trend following systems from the hundreds of systems that have experienced catastrophic failure.
One of the great benefits of trend following trading systems is the low cost of trading. Many systems trade as little as once or twice a year in any given market. This reduces trading costs in two ways. First, fewer trades result in fewer commissions. Secondly, fewer trades generate fewer opportunities for slippage, which can greatly reduce profits in more active systems. Slippage is the number one reason most systems don’t perform up to expectations. With over 3 decades of combined actual pit trading experience on the floor of the Chicago Mercantile Exchange, we believe that the WWFS execution team can give you the best possible results for your trading system.
Worldwide Futures Systems recommends trading a large, diversified basket of markets with trend following systems to increase the likelihood of being in one of those mega-moves. Including currencies, financials, metals, energies, and agricultural products increases the likelihood that you too can experience the thrill of a mega-move. Of coarse high volitatility markets can generate numerous small losses which would negatively impact your bottom line.
Call Worldwide Futures System today at 888-989-WWFS for more information on implementing a trend following trading system in your portfolio.
Trend Following Systems currently offered through WWFS:
- Dollar Trader - A medium to long term trend following trading system, "Top 10 most consistent system since it's release date" in 2009. Rated as the top Japanese Yen system since it's release date, 2010 and ranked 2nd in 2011. Ranked as a top 10 EuroCurrency system in 2011 , all by FUTURES TRUTH MAGAZINE.
- Ready, Set, Go - A long term breakout system run on weekly bars. Rated "Top 10 most consistent system since it's inception." The Top Rated EuroCurrency system 2009, Top 10 rated bond system in 2011, 23rd ranked Natural Gas system in 2010, 9th ranked Cotton system 2010, 16th ranked bond system 2010, 26th rank EuroCurrency system 2010, 23rd ranked EuroCurrency system 2011, all by FUTURES TRUTH MAGAZINE.
- Golden SX - A long term breakout system run on daily bars. Rated in Futures Truth Magazine's "Top 10 most consistent system since it's inception", 3 years in a row- 2007, 2008, 2009. 28th ranked Japanese Yen system 2010, 17th ranked Coffee system 2010, 16th ranked Coffee system in 2011, 24th ranked Crude Oil system 2010 and 23rd in 2011, 13th ranked Cotton system 2010 and 11th in 2011, all by FUTURES TRUTH MAGAZINE.
- Catscan 4 - A medium to long term breakout system run on daily bars. Top 10 multi-commodity system of the year in 2009. Top rated Dollar Index system in 2010 & 2011, 2nd ranked EuroCurrency system 2010 & 2011, 14th ranked Natural Gas system 2010 and 12th in 2011, all by FUTURES TRUTH MAGAZINE.
|