The Best Trading System - Selecting One

A trading system can be as simple or as complex as you wish, however, simple systems tend to do better since they eliminate information overload. If we take in too much information, the decision process becomes difficult which results in bad execution or hesitation, causing losses.

So it is best to exercise some degree of caution when choosing a trading methodology. Simplicity is ideal when we are searching for the best emini trading system to meet our needs.

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If simplicity is the goal, system design is the criteria we should look to first. Is the design of the system built with user-friendliness in mind? Nothing is more frustrating than watching the market and dealing with a difficult system.

It should flow easily between the different modules that make up a system. Your futures broker should provide fast execution when your system reveals a trade set-up and work well with your charting software or time and sales feeds.

Data feeds should be in real-time which require dependable Internet connections from a reputable Internet Service Provider. A back-up Internet connection is recommended should your ISP fail.

If you've ever been in a trade and lose your connection, frantic can best describe the feeling a trader experiences when his ISP goes down. A back up connection is a must since major losses can be the result.

The best emini trading system, as you can see, is not just a single module or one size fits all. Interaction between various tools is a requirement as outlined above.

Trading methodology is the heart of the system. Choosing a time frame to trade will be part of your system. Traditionally, day trading is the method most often associated with index futures trading, with many traders choosing scalping as their approach to the futures market.

Choosing to take small profits many times throughout the day while the daily cash market is open. Others will open positions and trade the overnight sessions when trading is much slower. Some use a combination of both scalp trading and classic day trading throughout the day.

The use of traditional Japanese candlestick charts are used by most index futures traders, while some experienced traders will use only a time and sales screen. Others use a combination of charts, indicators and oscillators to determine when to enter and exit the futures market.

Pivot points around areas of strong/minor support and resistance is another often used methodology and is very productive. As you can see, the choices are varied and trading is available to just about any methodology favored by the individual trader.

Having the best trading system that fits your personality and trading style is what we are after as futures traders. The market is complex no doubt. It is fickle and ruled entirely by the emotions of greed and fear which creates a paradox.

While we see the evidence of emotion every day in the market, we seek out a trading method which eliminates the emotional aspect of trading. Our ideal is to react only to the conditions presented by the market in technical terms, not through fear or greed.

Your system should be of such design that you automatically submit trades based only on technical analysis, without hesitation. Hesitation is the result of emotion which more often than not translates into bad execution and loss.

A good trading system will assist you in determining when to place trades based on market dynamics and technical conditions, not financial news reports, crowd mentality or geopolitical events.

Is there a perfect index futures trading system? No. Is there a trading system that will help you become a proficient? Absolutely! Odds are if you are reading this, you have some experience in the financial markets, most likely as a stock day trader, swing trader or just a long term investor.

Although if you're a long term investor, it is recommended you first read up on technical analysis since you are more likely coming from a fundamental background rather than a technical analysis background.

Short term traders live and die by technical analysis and some education in this area is important before venturing into index futures trading.

As a trader, you can build your own system or you can choose to adopt one of the better trading systems available. However you choose to proceed, finding the best emini trading system will boil down to personal choice and what best suits your trading needs and goals.


What trading system and setup strategies do you prefer? On what time frame?



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