Carley Garner's Blog: What's new on DeCarleyTrading.com, page 81
May 4, 2009
Register for a complimentary option trading webinar with DeCarley Trading
is attention.
Pearson Education, the New York Institute of Finance and DeCarley
Trading have all teamed up to provide a free option trading
education session featuring Carley Garner.
Date: Thursday May 7th
Time: 4:30 Eastern
Place: Online
How: Register for free access to the webinar...
The Stock Index Report by Carley Garner
Register for our "Talk to Series" option trading webinar hosted by
the New York Institute of Finance and presented by DeCarley
Trading! Visit our websites for details.
Better data, better market
After being described as a patient in critical condition for much
of the first quarter of 2009, the U.S. economy is showing glimmers
of a recovery....
May 1, 2009
The Stock Index Report by Carley Garner
Register for our "Talk to Series" webinar with the New York
Institute of Finance! Visit our websites for details.
Statistically positive, but actual upside marginal
Based on historical statistics, today was slated to be a positive
day. However, after posting the best month in nine years, the
major indices took the opportunity to take...
April 30, 2009
The Stock Index Report by Carley Garner
Register for our "Talk to Series" webinar with the New York
Institute of Finance! Visit our websites for details.
Mutual fund buying dries up
Traders claim that sidelined cash has been put to work in recent
trading sessions but note that mutual fund buying seemed to taper
mid-session. In yesterday's newsletter we mentioned that the
market...
April 29, 2009
The Stock Index Report by Carley Garner
Register for our "Talk to Series" webinar with the New York
Institute of Finance! Visit our websites for details.
GDP, Fed and Buy stops make way for stock rally
An early morning GDP report, and the Fed, indicated that the
economy may have stabilized. Investors welcomed the news and bid
the major stock indices higher while those short...
April 28, 2009
The Stock Index Report by Carley Garner
Register for our "Talk to Series" webinar with the New York
Institute of Finance! Visit our websites for details.
Awaiting the Fed
Again, stocks managed to pick themselves from up what seemed to be
a desperate overnight session. Slightly positive data and news
that IBM will be raising its dividend by 10% offered the market
some hope...
April 27, 2009
The Stock Index Report by Carley Garner
Register for our "Talk to Series" webinar with the New York
Institute of Finance! Visit our websites for details.
Swine flu or cop out?
Global equities sold off sharply overnight what many were referring
to as swine flu panic. However, we believe that the swift rally
that occurred late last week simply needed an excuse to take a
breather....
February 2, 2009
Automated System Trading
Shop for algorithmic futures trading systems here:
https://decarley.isystems.com/
We are partnered with a system vendor who has conducted due diligence on a handful of system developers, and over 800 systems, which have proven to be relevant. While past performance isn’t indicative of future results these systems have established track records. DeCarley clients choosing to participate in system trading are provided access to a database of live systems in which they can initiate, and cease trading, of a particular system with the click of a mouse. These automated systems are 100% platform based, and controlled by the client. Thus, there is no need for a Letter of Direction or any third party execution service.
Our systems can be executed in accounts with Gain Capital, Rosenthal Collins Group, Dorman, and more.
What is an Automated Futures Trading System?
An automated futures trading system is a defined set of technical rules and parameters that ultimately determine entry and exit points for a given contract. In the event that all of the stipulated technical events occur, a buy or sell signal is created and a trade is automatically executed without human intervention.
Each system is comprised of specific ingredients and circumstances, but they most commonly involve moving averages, stochastics and other computer-generated oscillators.
As you can imagine, the results are highly dependent on how well the rules perform in various market conditions. Accordingly, system developers spend an incredible amount of time optimizing the system to manage risk a
nd increase the odds of profitable results in any environment.
Why use a Trading System?
1. Eliminate Emotion - A majority of unsuccessful traders are the victim of fear and greed. An automatic trading system reduces the impact of human emotion.
2. Time-Saving - System traders have the luxury of having a day job and or the freedom to step away from the computer during market hours. Trading rules are pre-determined and execution is automatic, whether you are watching or not.
3. Convenience - Let others do the work for you. We provide 24-hour surveillance of several trading systems in which we have formed strategic relations with. All you have to do is keep an eye on your statements at the end of each day to ensure that you are satisfied with the results.
4. Like Markets, Systems can be Traded – Speculators can actively trade a futures system performance by implementing and ceasing trading of the system based on the peaks and valleys of returns. For example, it may be an opportune time to begin trading a system that is experiencing a drawdown and call it quits after a good run. This is because market conditions often fluctuate in cycles in which the performance of technical futures trading systems will also oscillate.
Drawbacks of using Automated Trading
1. Systems don't have Common Sense - Because systems are driven by technical analysis rather than human discretion they will often generate signals that may be considered low probability trades. For example, a system may generate a sell signal in a market that is at an all time low or a buy signal at or near a contract high.
2. Back Testing isn't Necessarily Reliable – Systems are often developed through a process known as back testing. However, back testing simply gives you information on what the system would have done if implemented in the past. It isn’t reasonable to infer that the same results will be obtained in real time or at any point in the future.
3. Markets are Constantly Evolving – Similar to the flaws of back testing, system performance at any given point may or may not reflect its ability to operate profitably throughout time. This is because market conditions are dynamic but system parameters are typically constant. While system developers can tweak the parameters in order to enhance performance, considerable losses may be sustained prior to recognition of a need to adjust parameters.
4. Trades may be Contrary to your Opinion – System trading eliminates the emotions involved in making the decision of entering or exiting a market but it can be challenging to watch the system execute a long trade in a market in which you are personally bearish.
Do Automatic Trading Systems Work?
Let’s face it, if making money in the markets was as easy as buying or leasing a trading system and quitting your day job then everyone would do it. Unfortunately, it is far more complicated than that. There are an unlimited number of trading system and software sales representatives that will do whatever it takes to convince you that their product is capable of consistent returns in all types of market scenarios. However, we have yet to find such a “holy grail” of trading.
With that said, there are legitimate systems that have proven to be productive over time and in the right circumstances. One of the most infamous trading systems was developed by Richard Dennis and Bill Eckhardt, known as the Turtle Trading System. The Turtle System has enjoyed years of success and can be evidenced by the financial accomplishments of its developers. Additionally, many hedge funds and institutional commodity traders have adopted system trading as their primary method of speculation. Perhaps this suggests that they can be a viable market tool.
Beware of trading systems that promise spectacular returns. When it comes to futures system trading, if it sounds too good to be true it probably is. You must realize that many of the system creators and sellers aren’t required to register with the National Futures Association; as a result, they enjoy the freedom of speech without accountability. Not all system vendors abuse the privilege but some do and you owe it to yourself to get the facts before putting your money on the line. As a consumer, it is imperative that you know who you are dealing with and what is realistic in terms of performance.
Shop for futures trading algos here: https://decarley.isystems.com/
February 1, 2009
Trade Futures in an IRA
Trade Commodities in an Individual Retirement AccountWhile we would never advocate a large percentage allocation of your retirement funds to commodity trading via self-directed, full-service or even managed futures accounts; there are definite benefits to trading funds earmarked for commodities in a retirement account.
The most prominent example being tax deferred or tax free growth depending on the type of qualified Independent Retirement Account (IRA). In theory, trading accounts within the shelter of a tax friendly IRA have the potential to grow at much more rapid speeds relative to those in a non-qualified account (outside of the IRA umbrella).
However, it is important to note that the advantages of an IRA enjoyed by profitable traders becomes a burden for those that are less fortunate in the markets. Unlike losses in a non- qualified account, IRA losses are not tax deductible. Additionally, there may be considerable fees associated with trading futures and options in an IRA which can exaggerate trading losses. The custodian we work with offers extremely competitive custodian fees...please contact us for details.
Contact us at 1-866-790-TRADE (8723), info@decarleytrading.com
Which Brokerage Firms Allow Futures and Options Trading in an IRA?
DeCarley Trading offers traders the ability to speculate on commodity options and futures within a tax sheltered retirement account. However, not all brokerage firms are capable or willing to enable such a trading arrangement. For instance, due to risk management concerns, many of the popular discount brokerages or broker-dealers (those dealing with stock and futures clients) don't give clients the option to trade futures or options on futures within a retirement account. Additionally, those discount firms that do accept IRA accounts might enforce stricter day-trading margins and or risk management techniques such as forced liquidation.
If you are interested in using IRA funding to speculate in commodities or the financial futures markets, contact DeCarley Trading today at info@decarleytrading.com or 1-866-790- TRADE (8723).
Types of IRA's that can be Traded in Options and Futures
Traditional IRA - Annual contributions may be fully or partially deductible and earnings are tax-deferred; there are income restrictions.
Roth IRA - Annual contributions are not deductible, but withdrawals can be made at any age, tax-free of withdrawal.
Rollover IRA - Allows retirement funds from another IRA or from an employer-sponsored plan such as a 401(k) to remain tax-deferred until the time of withdrawal.
SEP IRA - Small business retirement plan in which the business contributes the same percentage of compensation for all eligible employees.
SIMPLE IRA - Small business retirement plan in which employees are able to defer part of their salary on a tax-advantaged basis, as well as optional employer contributions.
How to Trade Commodities in an IRA
In order to allocate retirement funds to trading the options and futures markets it is required that you open an account with a custodian firm that allows self-directed retirement accounts to be distribute to the commodity markets. There are only a handful of firms capable of such a service.
Once a self-directed IRA custodian is chosen, you must complete an application to open an account with your commodity broker of choice as well as an application with the custodian. Upon completion of both applications, they should both be mailed to the custodian for processing.
Here are a few custodians that we commonly do business with but you are free to shop around, as we are willing to work with any reputable firm. In your search for a custodian, there are a few key concerns that you should focus on: the percentage of your funds that can be applied to your trading account and the fee structure. Some firms limit the percentage of funds that can be forwarded to your futures trading account; clearly, if this is the case you would want to strongly reconsider using them as your custodian. Likewise, you want a firm that is capable of offering competitive fees and efficient service.
Midland IRA *RECOMMENDED
Eric Lutz Midland IRA1520 Royal Palm Sq Blvd #320Fort Myers, FL 33919P: 239.333.4916F: 239.466.5496elutz@midlandira.com
IRA Services Trust Company
P.O. Box 7080San Carlos, CA 940701-800-248-8447www.IRAServicesTrust.com
Sterling Trust Company
P.O. Box 2526Waco Texas 76702-25261-800-955-3434 - Option 2www.SterlingTrustCompany.com
To open a Futures and Options IRA
Trade Futures in an IRA
Why Trade Commodities in an Individual Retirement AccountWhile we would never advocate a large percentage allocation of your retirement funds to commodity trading via self-directed, full-service or even managed futures accounts; there are definite benefits to trading funds earmarked for commodities in a retirement account.
The most prominent example being tax deferred or tax free growth depending on the type of qualified Independent Retirement Account (IRA). In theory, trading accounts...
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