Frequently Asked Questions

Generally speaking, the futures products will be the most reliable, because they are easier to back-test and they have been trading live much longer.

If someone has about $50,000 available to trade with, then the most obvious choice would be the Alpha Trader, since in the walk-forward hyp account it has generated returns of about 9.83% per month (average).

If someone wants to limit their overnight exposure and is interested in a system that has traded live for over 9 months, generating returns of 6.81% per month (average) in live trades, then they should consider using the Trader+.

Yes. The algorithms are traded under a letter of direction, meaning you still have access to your funds. There is no holdout period, if you wish to stop, simply email the broker and let them know.

Once you are ready, you could email the broker and let them know. They would in turn reenable the algorithms in your account.

We encourage all of our potential customers to perform their own due diligence. We are registered with the BBB (A+ Rating) since 2014. In addition, we’ve been reviewed by a well-known blogger who reached out to our company some time ago without us knowing. This blogger is known for his very harsh criticism of trading system vendors.  In the end, he gave us 4.7 out of 5 stars. Out of the 50+ reviews he’s done, only a small handful receive anything better than 1 star.

We recommend you watch the following two-part video series, where our lead developer actually finds a strategy online (MACD Trading Strategy) – codes it up, and shows how effective it is. In the second video, he takes it a step further and adds a confirmation signal that is recommended by the third-party website – the Awesome Oscillator.  How does this strategy perform?  Our developer does his best to make it work – and the results might surprise you. Not only does he code up the strategy, show the performance reports, do his best to optimize the algorithm – but he also shows you the code and uses a finite state machine to create a sequence of trade events required to occur before placing the trade (first the MACD bullish cross, then the Awesome Oscillator bullish cross as confirmation).

This video series is very interesting – because it really demonstrates the power of Quant/Algorithmic Trading. Developing a valid trading system requires much more than providing one or two charts with a few suggestions. It requires the developer/vendor to clearly identify when to get in, when to get out, what stop to use, what limit order to use, what candle size to use (5 min, 10 min, 60 min, etc), what symbol (SPY, QQQ, ES, etc), to include commission/slippage and much more.

Here is Part 1 of 2 videos explaining how we are different.

Our representatives can help you get set up in just a few easy steps. Click here for more information on how to get started.

Understanding the risk of trading futures, we prefer to not use any hard sale tactics. Our approach is to simply present the data, with the appropriate risk disclosures, and let you make your own decisions. Our representatives are not licensed or registered investment advisors, or CTAs, so we cannot give you advice about your specific situation, but we are happy to provide you with information regarding our various portfolios and trading strategies. We encourage you to review the data, share with an NFA registered CTA (Commodity Trading Adviser) if needed, and let us know what questions you have so that we can address them.

For auto-trade execution, we have several options available. Contact us  for details.

Yes, automated futures & options trading is an alternative investment allowed in self-directed IRAs. One of our approved CFTC/NFA registered auto-execution brokers can walk you through the process so that you can trade your IRA or Roth IRA with our algorithms. Contact us to learn more.

Yes, we have developed all of our algorithms. Our lead developer has a Bachelor of Science in Electrical Engineering. He has worked for Fortune 500 companies as a programmer/logic design engineer including Hewlett-Packard, Intel, and Qualcomm. 

Logic/ASIC design engineers are all too familiar with finite state machines and how to implement complex parallel processing logic. In our opinion, these concepts translate well into the Quant field of programming algorithmic trading systems, since the markets can be thought of as one huge state machine with trades being initiated based on various sequences of events. Logic design engineers are also familiar with debugging logic and attempting to find holes in the code they create. This critical way of looking at a design also translates well into Quant trading. Writing a trading algorithm in many ways is the easy part. Doing your best to ensure the algorithm is not over-optimized and that it will trade well post-optimization is the hard part.  A critical/pessimistic approach to designing an algorithmic trading strategy is very helpful in producing a quality product that not only looks good back-tested but also walk-forward tested and finally in live trades.

We trade the Futures market, both long and short the Emini S&P Futures (ES). The algorithms are mostly day-trades, however it is possible that they can hold overnight on occassion.

Our trading systems, trade multiple uncorrelated algorithms concurrently. Understanding that no one can predict the market direction with 100% certainty, we instead layer in multiple algorithms into a single portfolio with the intent of having 1-2 algorithms that do well when the market is trading higher, 1-2 that do well when the market is going lower and 1-2 trading algorithms that are expected to do well during sideways moving market conditions.  Combined, we attempt to be NET positive 1-2 algorithms for each market condition (up moving, sideways moving, and down moving).

This doesn’t guarantee that every month we have gains, however in our opinion it is a great way to implement a purely technical trading system. Many developers attempt to create one algorithm that works in all market conditions, a very difficult if not impossible task in our opinion. 

> Learn more about our algorithmic trading design methodology

Yes. Unfortunately, since the company was formed in 2014, we have had individual packages that didn’t work out the way we expected and people lost money trading them. This is a good reminder that trading futures does involves substantial risk of loss and is not appropriate for all investors. They should be traded with risk capital only.

Yes. There is a smartphone app that will alert you anytime a new trade is placed.  You will also receive daily and monthly statements from the NFA Registered clearing firm, where your money is actually located. At the end of each month, once we post our results, you are able to compare your results with what we posted. Since the algorithms are traded in block accounts, we all see similar fills and there should not ever be any drastic differences between what we post and what your actual returns are.

Yes, we have multiple day trade short algorithms, which are traded in our trading systems. 

Click here to contact us for more information. You’ll be surprised how affordable they are.

Each package or trading system has a different “per unit” recommended trade size which is also the minimum dollar amount required to get started. Each unit represents a block of trades placed across the different algorithms contained in that system.

The Alpha Trader and the Professional package require a minimum starting account size of $50,00. The Elite Trader requires $35,000 while the Smart Pivot requires $25,000. Finally, the Trader+ only requires $15,000 making it the most accessible trading system we offer. Trader+ does not hold trades overnight, which is why it has a smaller unit size.

Contact us for more details. You can also give us a call at 1.877.766.9181.

The per-unit trade sizes for the trading systems we offer are built such that the account can incur some losses without an individual needing to deposit more capital.  In fact, the account minimum per unit trade size is designed for the account to be able to withstand the largest back-tested draw-down.

Of course, there are no guarantees in trading. It is possible that you could see losses that would require you to rebalance your portfolio or possibly add more funds. These algorithms should only be traded with “risk capital”.

Yes. Between the broker and representatives at AlgorithmicTrading.net, there is plenty of support available to you.

AlgorithimicTrading.net and its representatives/principles are not  Commodity Trading Advisers and do NOT offer managed or partially-managed account services. As a third-party trading system development firm, we do not directly control client accounts but offer the algorithms for auto-execution under a Letter of Direction. Our customers are able to override trades, modify allocation between the different trading strategies & shut off the strategies should they choose to.

Absolutely not. Algorithmic trading in the Emini Futures market on a relatively short-term basis should be considered a risky investment. AlgorithmicTrading.net and its representatives are not registered CTAs (Commodity Trading Advisor) and can not provide advice unique to your situation. Consult a professional to discuss your specific investment objectives and to determine if our algorithmic trading systems can provide a role in working towards those goals.

Please do not trade our algorithms if you do not have adequate risk capital to allocate towards them.

Yes, as needed. This is included as part of the maintenance of the algorithms. If we find an improvement to the existing algorithms, we will provide that to our auto-execution brokers and do our best to notify all existing customers of the change. This tends to occur on a yearly basis, with new ideas being rolled out in the first quarter of the new year. 

No.  The average gain per month is an average gain that the algorithms have made in a simulated account (Pro, Elite & Smart Pivot) going back to the period indicated. The returns that Trader+ posted are from Live accounts but are still an average of all months.  Some months they made more than what is posted, other months they made less or posted losses for the month. This is an average gain per month using the “per unit” trade size. 

Results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will, or is likely to, achieve profits or losses similar to these being shown.

Our system is 100% automated. There in no installation or action needed by you if you utilize one of our auto-execution brokers. Once you are set up, your auto-execution broker will trade the algorithms on your account, with best efforts. You will receive a daily statement. There is also a smart-phone app that will alert you in real-time when a trade is placed on your account.

No, pursuant to CFTC Rule 4.14(a)(9)(ii) we are not required to register under the Act as a commodity trading advisor. The algorithms are auto-executed for our clients under a Letter of Direction.

A person is exempt from registration as a CTA if “[i]t does not engage in . . . [p]roviding commodity trading advice base on, or tailored to, the commodity interest or cash  market positions or other circumstances or characteristics of particular clients.”

We encourage our customers to take a long-term perspective when using our algorithms and therefore do not provide refunds. Our contract states all sales are final. Trading is not easy, even with a high-quality, automated trading system like ours. It is best to not focus on the day-to-day ticks of the market or our performance. Instead look at it on a monthly or quarterly basis. Measure your results compared to the performance of the S&P 500 and enjoy the ride!

Yes, our representatives are available to answer any questions you might have and walk you through all the data we have. In order to speak to someone, simply fill out one of our contact forms (including your phone number) and an algo specialist will reach out to you.

AlgorithmicTrading.net and its representatives are not licensed investment advisers, or CTAs. Consult a professional to discuss your specific situation with them.