Futures Trading Blog for Independent Self-Directed Traders and System Traders - Optimus Futures - Commodties and Futures News

The Importance of Backtesting Futures Trading Systems

In this article we will discuss one of the most overlooked steps in building a futures trading system – regardless of the kind of market it is developed for.

Backtesting is the process of simulating trades that are triggered by rules defined in a trading system on past (historical) data. The process of developing a trading system is based on the suggestion that if it consistently worked in the past, then it will continue to work in the future. Thus, backtesting is a reliable way of confirming the trading system’s profitability – or rejecting it.

Many traders – especially novice traders – tend to ignore backtesting or underestimate its importance. This opinion is usually based on books or articles on learning technical trading where some ready-to-use “rules” are usually published. From reading

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Black Swan is part of Trading. Why Traders Should Always Treat the “Unexpected” as Part of Trading.

Last week the National Bank of Switzerland (SNB) announced that it will remove its peg to the Euro currency. As a result of this decision, the Swiss Franc currency soared 30%, and wiped out many retail traders, brokerages, and even sophisticated traders from various hedge funds. The focus of bloggers, journalists, and many news outlets has quickly turned to the impact of the SNB’s decision on many institutions who have relevance to the Swiss Franc, but little emphasis has been placed on the topic of leverage or the concentration of positions which has been one of the primary causes of trading losses during this unprecedented news event.

Currency Futures Swiss Frank Chart Currency Futures Swiss

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Trading Losses: an Honest Discussion in Trading Psychology

When thinking realistically, most new traders will acknowledge the fact that they will encounter losses, and that not every trade will be a winner. So why is it that many go into shock, devastation, and disbelief when they encounter losses? Lesson in Trading Psychology.

There are many factors involved, but these emotions generally present themselves when there is a single, cataclysmic day where losses are tallied to amounts that were imagined or expected. These losses usually are not tied to any significant market movements, but due to excessive trading, trade reversals, and the desire to overcome and erase losses that have already been realized. This narrative has become an all too often occurrence in traders who are just starting out. Many may even consider it a right

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Identifying Directional Reversals Instead of Picking Tops and Bottoms

Traders looking for new market opportunities are continuously looking for price tops and bottoms in an attempt to enter the market at the most optimal time. Tops and bottoms are often perceived from news hits with announcements of new highs or lows where traders may start to study the market more closely.

As prices continue to climb or descend, depending on the direction of the trend, traders line up to short a potential top or buy into a potential rally after a dip in price. Most of the time, however, this is done not by hard statistics or metrics, but based on feel or ‘intuition.’ While this strategy may work temporarily, out of sheer luck, the long-term implications of such a strategy tend to be much more erratic as traders place

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Why You Shouldn’t Drop Technical Analysis Even if You are a Day-Trader

The combination of volatile markets in 2008 and the rapid advancement of trading technology opened up new possibilities and an emphasis on the ‘day trader.’ Many amateur traders were drawn in to day trading after hearing unrealistic, although popular, promotional phrases such as ‘daily income’ and ‘don’t wake to disasters.’ However, day trading is not less challenging than the traditional long term strategies, and in fact requires deep analytical skills along with a deep mental focus to translate and filter market noise. Market noise can be thought of as institutional interest that is not related to speculation.

Interestingly enough, the most disturbing trend has been the neglect for traditional technical analysis that has been exercised for over 100 years, and also the general acceptance that traditional technical analysis does not work.


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How to stay focused on your method and stop overtrading

What most traders do not realize is that their mistakes are not unique. Rather, the mistakes can be summarized by two factors: Neglecting one’s methodology and trading based on intuition. This leads to overtrading. 

Focused on Trading Futures


In this article, we will examine why traders neglect their method and how to exercise more discipline and avoid intuition based trading.

  •  Avoid taking any trades that are outside your method. Trying to earn that “extra” based on your gut feel is nothing but baseless trading and could potentially lead to the loss of initial gains (if any).
  • Don’t trade large quantities during lower volume time periods such as lunch time. Quite often during these periods markets can experience choppiness in which traders can get stuck in

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Are Trading Educators worth the time and money?

The Four Key Elements to evaluating a Trading Method 

Trading Educators


We receive a lot of emails asking us about all the different trading methods offered and almost every inquiry comes with a concern based on a real life experience with a prior trading educator, mentorship, course and so on. Most of the traders we talk to were either disappointed or regret buying certain trading products, claiming that it did not deliver the satisfactory knowledge necessary to succeed in the market place.

We cannot verify each method taught, approach or outlook nor is it our place to decide whether the purchase was worth it or not. Individual experience may vary and there is no way to realistically quantify every method offered out there. On the

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Announcements for Optimus customers regarding ADM Investor Services

We are pleased to announce that the owners of Vision Financial Markets, LLC (“Vision”) and ADM Investor Services, Inc. (“ADMIS”) recently executed a long term agreement to form a business alliance wherein Vision will transfer its network of customers to ADMIS on either October 31, 2014 or November 28, 2014, pending regulatory approval. Once this transfer has occurred, ADMIS will provide all FCM trade execution, clearing, custody, treasury, market information and research services to these transferred customers and Vision will exit the futures clearing arena.

We look forward with great enthusiasm to a new chapter that provides customers with ADMIS’s financial strength and our mutual commitment to exceptional customer service. ADMIS has been a leader in the futures brokerage industry for over 45 years and is known for its financial strength

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TopStepTrader Presented to Optimus Trading Group Customers

Optimus Trading Group Collaboration with TopstepTrader

We are very pleased to announce that Optimus Trading Group has partnered with TopstepTrader to provide a standardized training program for traders who seek to enhance their risk management skills.

In my opinion, there are two things missing in the retail space of traders today: Practicality and Pragmatism. Those who seek riches in the trading world soon find out that the market is a mechanism that, when approached randomly and without a plan, tends to shrink away capital pretty fast. On the other hand, you have those traders who are very educated but have a debilitating fear of “pulling the plug”. This paralyzing and frustrating fear often prevents them from trading with their own capital.

I have spoken to countless traders that suffer from these fears, which

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NinjaTrader DOM Enhancement: Flexible and Adaptive 9G

9G_Trading Dom

Please join us for a LIVE WEBINAR on Tuesday, March 11th at 4.30PM EST as we introduce 9G, a brand new order entry platform for NinjaTrader which allows you to trade the markets using a fully customizable order book.


Youtube Video: An Overview of the 9G Trading DOM

So what extra benefit does the 9G Dom provide over the standard NinjaTrader Dom?

We believe that the 9G Dom offers a significant trading advantage over the standard NinjaTrader SuperDOM. The most notable features being the full depth of market display. In NinjaTrader, Level II market information is summarized to keep performance in check (Profit & Loss in Account). 9G has been built with a

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