|
|
|
|
||
|
||
Execution is the key to attempting to maximize profits with commodity trading systems. While most markets offer multiple platforms for execution, knowing which platform is best suited for a particular market or order type can make a world of difference. At Worldwide Futures Systems, we utilize our over three decades of experience, market and system evaluation, and broker relationships to determine which execution platform will give our clients the greatest possible edge.
How you choose to execute your commodity system trading signals directly affects the amount of slippage, or the difference from the entry price generated by a trading system to the actual fill price, and the overall performance of your trading system. Although most markets offer traders multiple platforms for execution – usually a traditional open-outcry trading floor platform and a computer-based electronic platform such as GLOBEX or eCBOT – most commodity system trading firms automatically route client orders to whichever platform has the lowest fees, regardless of fill quality, in order to save the firm dollars per trade. However, each platform has its own strengths and can be better suited for a particular market or order type.
For futures and commodity market system trading, it is essential that these strengths are utilized to their full extent to reduce or eliminate slippage. When you consider a commodity trading system that makes more that 100 executions per year, it is easy to see that great execution and strict slippage control can make or break a commodity trading strategy. Read our “Slippage Discussion” for a more in depth discussion of the importance of managing slippage.
At Worldwide Futures Systems, we use only the execution platform that will result in the best execution and minimal slippage, regardless of our cost. We believe it is better business for us to pay an extra few dollars in fees so that our clients receive a fill.
In our 30 plus years of experience, we have nurtured and maintained relationships with floor brokers of every major exchange in Chicago and New York. Our floor brokers understand our commitment to maximizing our clients’ potential and strive to eliminate slippage with us. We evaluate and analyze every filled order to make sure that each particular platform or broker is meeting our standards. If a broker’s or platform’s execution changes over time, we adjust our methods accordingly.
Contact Worldwide Futures Systems at 888-989-WWFS so that we can begin improving your portfolio with a commodity trading strategy today!
