Category: Trading Software

Futures traders today have to be at least somewhat computer literate. To attempt to trade except on a long term basis without using a computer program is just asking for trading losses.

The object of any computerized trading system should be to first of all to correctly identify the direction of the major trend and then to identify favorable entry points to enter your positions with the trend.

Some highly skilled traders manage to successfully trade against the major trend but the tactic is not recommended to anyone except highly experienced traders seeking very short term trades.

To enter the market at optimum low risk entry points means that you must have the guts and discipline to enter the market as it is correcting against the trend.

This is the exact opposite of the way many traders go about entering positions. They wait for a breakout, then hesitate a little to see if the move continues. This means that by the time they put on the trade the market has already made a substantial move in the direction of the trend.

While this may at times work to your advantage more often than not buying breakouts will set you up to be whipsawed.

That is, you enter the market on a breakout only to be hammered when the market reacts against the trend and hits your stop loss. False breakouts happen all too often.