Automated Trading Systems
What Are Automated Trading Systems?
Automated Trading Systems are algorithmic-based computer programs that process hundreds of thousands (even millions) of data points to determine when to make a trade and under what conditions. Each automated trading system has its own proprietary approach or methodology in determining and delivering this information. A number of the automated trading systems are very similar in operation and the information they provide. There are even some that require the use of a separate trading platform in order to utilize their system. But all are designed to provide signals, which indicate when and what direction to either enter or exit the market. By letting machines do the work, fear and greed are eliminated from the equation. Those two human flaws can often be responsible for significant losses, so by removing them, chances for success increase.
The ExitPoints Difference
Regardless of which system you choose, one of the single biggest differentiating factors between our automated trading systems and others is the fact that many of them only trade the S&P 500, or at best, one or two additional markets beyond that. ExitPoints automated trading systems provide diversity and insulation from risk by trading as much as 21 markets across 7 distinct and uncorrelated sectors. That provides you with a trading strategy that, by design, helps limit risk by diversifying your equity among multiple markets instead of just one or two.
Maximize Profit and Minimize Risk
ExitPoints creates sophisticated, technologically advanced automated trading systems designed to maximize potential profit while reducing potential risk. Each of our automated trading systems trade in a unique set of markets that we update regularly in order to stay on top of current market trends and to also offer our clients diversity in their automated trading strategies.
All ExitPoints automated trading systems have been designed to be totally self-reliant, artificially aware, and self-learning. Each month, as more experience is gained, and each individual trade is completed, the information is incorporated into the system-specific trade warehouse. 200,000+ past trades are stored within the trade warehouse and power the logic of the trading engine to determine best points to enter and exit the markets.
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Do you have a broker?
ExitPoints automated trading systems are auto-traded at various brokerage firms and auto-executed on behalf of our clients’ accounts- under a letter of direction agreement. If you already have a broker, we can work with them to receive our signals and trade on your behalf. If you do not not have a broker, we have a number of our preferred brokers listed on our Recommended Trading Resources page that are already set up and well -acquainted with our trading systems. Any of them are more than qualified to get you set up and trading with our systems.
ExitPoints Automated Trading Systems
ExitPoints automated trading systems use a two-step process to programatically determine the best entry and exit points on any given day to maximize profit or limit loss. You will not always come out profitable on every trade -- that is not what our service offers. But you can minimize the amount you would lose otherwise by not knowing the best levels to get out before things get really bad. Our automated trading systems make decisions based on historical trends, rather than a human making blind guesses fueled by emotion. Read on for more information about how our systems make just the right trade decisions at just the right time.
First, each of our automated trading systems creates and maintains a warehouse of hypothetical day trades from a basic volatility breakout system. Stored along with the warehouse trades are the values of our proprietary technical indicators for the day prior to each trade.
Second, the system will determine the statistical profitability of a trade with similar past market conditions as the current day. Depending on the outcome of the analysis, the system then decides whether or not it would be profitable to trade the next day. If a trade meets predetermined risk/reward criteria then the system will generate a signal to place an order, subsequently entering in on a volatility breakout and exiting at either the end of the trading session or when a predetermined stop-loss has been triggered.
All ExitPoints automated trading systems trade both long and short with one signal per market direction per day. They do not trade multiple long or short trades within the same day in the same market. However, rarely, the system may trade one long and one short signal in the same day in the same market.