When it comes to commodity trading systems, besides building a good methodology with a sophisticated logic that goes into generating the dynamic portfolio, you must integrate other factors that could have an impact on the performance of your trading.  Specifically, the trading algorithms should constantly monitor and manage 4 different measures of risk exposure on [...]

How to build a portfolio of trading systems that really work…
…Serviced by experts that really care
By Michael Levin
In a previous article I wrote for Futures Truth last year (How to buy or lease a trading system) I went into a litany of areas to focus on when selecting a trading system to buy or lease.  [...]

Systems Trading (part 9) By: Jake Bernstein www.trade-futures.com
A Rational Approach to System Development
I favor a rational approach to system development.  My rule of thumb is simple: your trading system should have no more than four to six variables.  You should search for the best combination of entry and exit variables as well as a reasonable [...]

Systems Trading (part By: Jake Bernstein www.trade-futures.com
System Testing
The days of untested systems are gone forever.  In fact, the pendulum is now swinging in the other direction.  While unscrupulous operators ‘in the days of old’ sold systems and methods for which they claimed fantastic results, today’s unethical operators use statistics as a toll of deception.  [...]

Systems Trading (part 7) By: Jake Bernstein www.trade-futures.com
How about Some Positive Suggestions?
Now that I have your attention, I will give you a few positive suggestions regarding trading discipline.  Again, I will attempt to avoid standard recommendations.  This is not to suggest that the time-tested methods do not work.  Perhaps if explained and presented in a [...]

Systems Trading (part 6) By: Jake Bernstein www.trade-futures.com
Plunge Headlong into the Market Without a Plan of Action
This is an excellent to way to lose money and to lose it quickly.
Why make a plan anyway? Would you drive from New York  to Los Angeles without a map?  You could.  And you might be lucky enough to [...]

Systems Trading (Part 4) By Jake Bernstein www.trade-futures.com
System Trading, Discipline and Profits
•    Cut your losses and let your profits ride.
•    The big money is made int the big pull
•    Don’t add to a losing position.
•    Always use stop losses.
•    Don’t meet margin calls.
•    When in doubt stay out.
•    The trend is your friend.
The cliches are [...]