Guide to Starting with Automatic Trading

Embark on automated futures trading: select a broker, choose a system, activate, monitor, and manage risk for success.

ALGORITHMIC TRADING

Javier González-Barros, CFTe

3/1/20242 min read

This guide explains the correct process to follow to start trading effectively with automatic trading systems for futures.

Step 1: Create an account with one of the brokers.

The first step is to register with an online broker, such as iBroker or NinjaTrader. To activate your account, you will need to verify your identity and deposit funds into it.

Step 2: Select your trading system.

Explore the available trading systems and choose one that aligns with your investment goals, risk tolerance, and market preferences. Consider factors such as historical performance, risk, and the strategy used by the system.

Step 3: Activate the systems.

Each automatic trading system has a monthly license fee. You also have the option to get discounts by activating them quarterly or annually. In addition, you must take into account that you have to select the number of units; typically, 1 unit is equal to one contract.

Step 4: Monitor your operations.

Although automatic trading systems operate independently, it is important to regularly monitor the performance of the systems. Make sure the system remains aligned with your investment goals, but avoid the loop of activating and deactivating a system and combining your way of trading with the systems, as it usually does not work.

Step 5: Manage your risk.

Automatic trading can offer many advantages, but it is important to consider the suggested capital for operating each system. Do not get carried away by the greed of using more units. Be patient. Trading is a game of strategy and a lot of discipline.

Automatic trading can offer many advantages, but it is vital to trust the system, set appropriate risk limits, and never invest more than you can afford to lose.

Some tips on how to start trading with automated trading systems:

  • The choice of system is crucial: Spend time researching and selecting the system that best suits your needs.

  • Risk management should not be ignored: Ensure you set effective risk controls.

  • Although the systems operate automatically, supervising their performance helps you make necessary adjustments and maximize your chances of success.

  • Stay informed about the market and new automatic trading technologies to make the most of your investment.

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ibroker
ibroker
GAIN CAPITALGAIN CAPITAL
AMP FUTURESAMP FUTURES

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