Frequently Asked Questions (FAQs)
Here's how the AST Trading System and service work. These unique proprietary trading systems and service are designed to replicate the actions of the traders who trade for their own accounts outside the open outcry trading rings. It also forces you to trade with the discipline of a professional trader. You'll enter trades during special situations in the market that have a high potential of generating a good price swing. If the price move doesn't develop, the system will automatically exit the trade at specific stop loss points. It also tells you where to take your profits. There's no guesswork and all orders are very specific. You receive trade signals instantly through the Internet during market hours as our own trading computer generates the signals with real time price data.
Daily Trade Maintenance and types of orders. We deliver the trade signals directly to your computer by means of the Internet as they are generated in real time during the full market daily session. Specific trade entries are delivered with buy and sell stops and each entry gives you a specific point to exit each trade to cut losses and to take profits. The user knows what to do by getting easy-to-understand trade entry and exit orders while always maintaining a stop loss order in the market. Its very simple! [Please note that stop-loss orders are subject to slippage due to market conditions and prices that gap on the opening from the previous close.]
Who are the people behind Advanced Trading Systems? The people associated with it have been involved with trading and market research since 1993. We have invested thousands of hours and dollars in research in order to determine which trading techniques and strategies have the greatest credibility. The art of conducting quality systematic trading research cannot be found in any book or taught in any class. You acquire it through tedious years of research and innovative thinking. We bring our clients a level of expertise in trading systems that is unparalleled on many levels in this industry. We say this because the vast majority of participants who trade the markets have not taken the time or made the investment to indulge themselves in the study of the markets on a full time over the years.
Our unique order delivery system...is state of the art technology. Our signal delivery service is unique in that we deliver trade signals in real time to subscribers by Instant Internet alerts and a special application software that allows your computer to be directly linked to our trading computer that is receiving and responding to real time quotes. The user logs onto the Internet and open up our application software during market hours and instantly receive trade orders when generated by our own trading computer responding to actual real time prices. We alert the user's computer when a new trade order has occurred and you or an authorized executing broker can implement the trade order directly into the market. (Please Note: We only serve PC compatible computers at this time.)
What if I don't have much trading experience? If you don't have much trading experience don't worry. All new subscribers to our service receive a starter's booklet that will explain exactly what to do and what the orders mean. If you still aren't sure what to do after reading it, give us a call and we'll personally explain to you what is involved so you can hit the ground running with confidence. There's no reason for you to have any confusion, because the orders are very easy to implement.
How often does the system trade? It would be great to generate a trade or two a day. Unfortunately we've yet to create this level of trading activity that can produce the kind of quality or performance we'd like to see in a system. The intra-day trading systems (Chronos-1, Blind Terry or RT Trading Signals will enter the market about 2-3 times a day on average. every couple of days on average. If we attempt to generate more trading activity than this, we run the risk of over trading the account and producing undesirable results. The positioning trading systems (Atlas-35) will enter the market every couple of days on average.
Do I need live quotes, system design software or programming skills? Thats the beauty of using our service. All you need is a PC and Internet access. We pay the expense of obtaining real time quotes and those quotes are streaming on a real time basis right into our proprietary trading software which instantly crunches the data and spits it out directly to your computer that is logged onto the Internet. The whole process occurs in a fraction of a second. While we monitor the market you can surf the web or do other things on your computer. When we send you an order an audible alarm alerts you. You get the net benefit of our investment in quotes, software and hardware not to mention the thousands of hours of trading research.
How much capital does the system require to trade? This is up to every individual. Minimum margin to hold a single contract position in the S&P500 e-mini market over night is currently about $5000. If you add the worst single e-mini contract draw down that's been generated with our Chronos-1 you should add about another $5000 for each contract for a total of $10,000. About 4 trades per year will generate a unique second or add-on position. But these are very rare. We advise every client to start small. After becoming more familiar with this trading system you will be in a better position to determine when to increase your trading size or leave it right where it is.
Does the systems hold positions over night? Many traders want to exit their trades in the same day they enter in order to avoid holding positions over night because they believe this reduces risk. Our research shows that over time getting out on the close does exactly the opposite and actually increases your chances against a profitable result. Holding profitable trades as long as you possibly can is the road to profitability. If you don't believe us, we can prove it to you. Cronos-1 and Blind terry intra-day trading systems do not hold positions overnight. Atlas-35 is based on medium term open trading model and holds overnight positions.
Why isn't the percentage of profitable trades higher? The need for you to be right the majority of the time, has nothing to do with being profitable in the long term. There are certainly those times when the number of profitable trades compared to losing trades are much higher than what is shown after nearly four years of trade results. Do you want to be right or do you want to be profitable? There is a huge difference between the two. If the the reward to risk ratio is more than 2:1 the system may produce profit even with less than 50% profitable trades.
What is the S&P 500/Nasdaq-100 e-mini contract? The S&P500/Nasdaq-100 e-mini contract is one of the fastest growing electronic markets in the United States. Prices in this market move almost identically to the full size S&P500/Nasdaq-100 contract that is traded in the open out cry trading ring on the floor of the Chicago Mercantile Exchange. The S&P 500/Nasdaq-100 e-mini contract is 1/5th of the full size contract using the e-mini contract, which calls for a lot less capital to hold a single e-mini S&P500/Nasdaq-100 contract position.
Why is there a limit to the number who can use this system? If too many people trade the best of trading systems, at some point it can start to negatively impact performance from the market. Initially we are limiting the number of people who use this system to 200 participants. If this is too much, we will cut the number of participants back based upon who were the first to subscribe. If we are certain that we haven't reached total capacity at this number, we will gradually increase the number of participants. We don't want to ruin this system for everyone by taking on too many subscribers.
Can I be assured theses trading systems won't be over sold? Absolutely, you have our word on it. The greatest problem that will prevent us from satisfying a select group of clients who subscribe to this service is to allow an excessive number of people to use this system. We view the issue of over-usage as a serious issue and will prosecute any one abusing their exclusive right to this trading information for the benefit of those who have not paid for the service.
Why can't I lease these systems or purchase them outright? If one could buy or lease the system, then it's theirs to share with their friends. If that should happen, it's kind of tough to put the genie back in the bottle so to speak. Rather than worry about this kind of problem ever happening, we would prefer to maintain control of the actual system and allow access with a monthly subscription arrangement.
What if I don't have the time to implement trades myself? This trading system is designed for the dedicated and committed user. Managing a trade during the day while the market is still trading gives you the best possible opportunity to implement appropriate orders. This is not a day trading system but there will be those days when you exit a trade in the same day that you entered. By monitoring and managing exit stops during market hours you have a better edge in managing risk because you are there to respond as market conditions develop. IF IMPLEMENTATION IS A PROBLEM FOR YOU, PLEASE CONTACT US and we can refer you to one of our authorized executing brokers.
Do we offer any kind of guarantee? The other day I noticed a headline on the cover of one of those investment magazines where it stated the following: Six ways that will make you rich! Now, if you subscribe to that magazine and don't implement the six ways that they claim will make you rich in exactly the way they suggest, would you expect to get a refund on the price you paid for that magazine? Or better yet, if you did exactly what they suggested and it didn't make you rich at all, would you expect to receive a full refund on your subscription? Of course not. What we will guarantee is the prompt delivery of our information. If for some reason our application software is not compatible with your computer or existing software and we can't deliver the trade signals, we'll gladly return the full amount of your subscription.
And don't forget our standing free offer: We also offer everyone of our clients a very unique freebie: We will investigate or test any computerized trading system that you are considering to buy, lease, or have developed in order to help you avoid making one of the biggest mistakes of your financial life. We have invested many dollars and hours in system testing and we have a large library of historical prices on many markets. Please keep this offer in mind when you've discovered the next 'holy grail' of trading systems! It could save you a bundle!
Why should I use System Trading? Emotional decision making is often a trader's worst enemy. System trading removes this emotional element from trading. (In fact, many of the top-performing Commodity Trading Advisors (CTAs) rigidly follow proprietary trading systems.) A trading system eliminates gut feelings, second-guessing, whims, uninformed decision making and other emotions which many times are responsible for traders' losses. An added benefit of trading a system is that it eliminates the anxiety, time and effort of formulating a trade.
We believe a good trading system does not give you any choices-it should tell you exactly what, when, where and how to buy. Additionally, it should tell you clearly, in an easy to understand manner, exactly when to buy or sell.
The Bottom Line is that the trading systems provide discipline to overcome the fear and greed that paralyze traders and prevent them from making proper decisions. Systems remove the pressure of making specific buy/sell decisions on a trade-by-trade basis. Each order placed is governed by a predetermined set of rules that does not deviate based on anything other than market action. Finally, a system will include specific money management parameters and the mechanical placement of these orders ensures those rules are being followed.
Using A Broker
Many systems require constant monitoring where a trader must be "glued" to a trading terminal. Using a broker can eliminate virtually all the work associated with trading a system. Additionally, a broker can assist you in placing the system orders in the market as an objective third party. It eliminates the temptation to deviate from the system. Brokers watch their screens all day so traders do not have to follow the markets. Ask your broker about how the system you select can be traded for you.
ATS Trading Systems
ATS has designed and implemented a variety of computerized technical trading systems.
To reduce the losses stemming from being in the wrong environment, our trading systems have both trend-following and trading-range characteristics. The systems are based on computerized technical analysis, which made a number of technical indicators more feasible to follow on a daily basis. Technical analysis can be defined as the art of studying, in graphic form, the internal performance or action of a market. Technical analysis is used in conjunction with sound money management and careful fundamental analysis. In addition, quantitative fundamental analysis have been used to increase the effectiveness of the trading systems in any single trading environment.
Do you trade using a specific system that you developed or subscribe to through a third party? Are you too busy to monitor this system throughout the day? Our Affiliated Brokers will trade your system for you or help you choose a trading system. The system-assisted trading program is designed for investors who are interested in the markets, but do not have time or desire to trade for themselves, or for someone new to commodity futures trading.
System Assisted Program
Our System Assisted program was introduced to offer investor's another opportunity to participate in different markets and a diversity of time frames. The Trading Program includes trading systems capable to trade Financial Futures, including S&P short and medium term, NASDAQ, T-Bonds, currencies, as well as agricultural, industrial commodities, and the energy complex.
If your trading plan includes utilizing a third-party trading system or a system that you have developed yourself, the System-Trading program will assist you in your trading activity. The You broker can implement the trading system of your choice and alleviate you of having to be tied to the market all day.
You will be able to monitor your system trading through our "Client Login" section that will provide you with Real-time dynamic account updates that mark all of your open positions to the market, so you'll know exactly how your system is doing every step of the way.
How the System-Assisted program works? Our trading systems are available for investors who utilize the services of Broker-Assisted or Discretionary or accounts through the professional brokerage services of our Affiliated Brokers who provide exceptional system management. The customers can choose a trading system that accommodates his/her needs, criteria and trading style.
The trading systems are offered on a monthly subscription plan and all signals are executed for you by us or by our affiliate broker. With us or with an affiliate broker, you have access to your account 24 hours a day. With an on-line account you can see your position and equity in real-time, get real-time quotes, and enter orders online. But again, there's no need for you to enter your orders for the trading system you choose because our affiliate broker can do that for you.
1. A new trading account with ATS Affiliated Broker.
2. Authorization for our traders to trade your account.
3. Trades which follow the system-based signals.
4. Same day fax or e-mail trade notification from the broker.
5. Next day written trade confirmation mailed to you.
6. Ability to withdraw or add capital to your account at any time.
If you already know a little about futures and options, but do not want to start trading on your own, please see the system-assisted program Terms and Conditions. Complete the Request Form and a representative will contact you to discuss a service to meet your needs.
What are the Trading Systems Guidelines? A trading system is a systematic way of trading the market. You must be able to understand how the system functions. What it can and cannot do. What parameters and indicators drive it. You can only trade with complete confidence once you clearly understand the potential and limitations of a system.
An Advantage. You get this by following a good reliable trading system, one that has proven itself in real-time trading. The system must issue clear and objective signals. This will help you trade without any emotions to distract you from your long term objectives.
Discipline. You must have discipline to follow the system. Once you second guess a system, it becomes useless to you. You must also be able to conquer fear and greed.
Adequate Funds. You must always be conservative and have adequate margin funds for each contract traded. Trading is like any other business, you must be well capitalized to hopefully succeed in the long run.
Systems Limitations. Although the systems presented here are very powerful, and have succeeded time and again in going long at or near market bottoms, and short at or near market tops it does have its limitations. No system can be perfect and our systems will sometimes miss the top or the bottom. When this happens, a more cautious trading strategy must be employed to minimize risk and limit losses. In these situations, the trader must place buy or sell orders more defensively. A more detailed explanation of the systems' limitations is given under the heading for each system. [The risk of loss will always exist in Futures Trading].
THERE IS RISK OF LOSS IN FUTURES AND OPTIONS TRADING.
PAST PERFORMANCE IS NOT NECESSARILY
INDICATIVE OF FUTURE RESULTS.
This site has been prepared solely for information purposes, and is not an offer to buy or sell or a solicitation of an offer to buy or sell any futures or options on future contracts. The information presented in this site is for general information purposes only. Although every attempt has been made to assure accuracy, we assume no responsibility for errors or omissions. Examples are provided for illustrative purposes only and should not be construed as investment advice or strategy. The information presented herein has not been designed to meet the rigorous standards set by the Commodity Futures Trading Commission for disclosure statements concerning the risks involved in trading futures or options on futures. That disclosure statement must be provided to you by your broker.
Copyright © 2004 Advanced Trading Systems, Inc. All rights reserved.