Why Automated Trading

Automated trading systems, also referred to as mechanical trading systems, algorithmic trading, automated trading or system trading, allow traders to establish specific rules for both trade entries and exits that, once programmed, can be automatically executed via a computer. The trade entry and exit rules can be based on simple conditions, or can be complicated strategies that require a comprehensive understanding of the programming language specific to the user's trading platform, or the expertise of a qualified programmer.

Automated trading systems can come in two forms:

100% Hands Free:

Anyone can utilize the “Hands Free Operation,” and it is the preferred method of most automated trading strategy traders/investors. Simply open an account with one of our third party brokers, sign up for a subscription to NTACT, fund your account – and the rest is taken care of by the automated trading strategy and your third party broker.

Self Monitored:

An experienced trader will open an account with a direct access broker and install the strategy directly onto his/her trading computer. The automated trading strategy will enter and exit trades, manage and move your stop and profit target automatically with no manual intervention by you; however, it does require monitoring.

Investors or traders of any age, trading knowledge or experience can benefit from automated trading strategies. If you fall into one of the categories below, then automated trading strategies might be for you:
  • If you do not want to spend the time, money and effort on learning the financial markets.
  • If you have struggled to make money in your current trading with the pattern of “make some, loss some, but basically breakeven.”
  • If you have tried to trade but have never been able to put it all together and be successful.
  • If you are an experienced trader looking for diversification in your trading results.
  • Amateur Trader
  • Experienced Trader
  • If you have any money in the markets that have underperformed your expectations.
  • If your trading, investment or retirement account has not seen substantial growth during both up and down markets then automated trading may be for you.
Trading the markets using a trading system provides the discipline to overcome the fear and greed that in many cases paralyzes a trader and prevents making timely decisions. Each order placed is governed by a pre-determined set of rules that does not deviate based on anything other than market action.
There is a long list of advantages to having a computer monitor the markets for trading opportunities and execute the trades, including:
  • Minimize Emotions. Automated trading systems minimize emotions throughout the trading process. By keeping emotions in check, traders typically have an easier time sticking to the plan. Since trade orders are executed automatically once the trade rules have been met, traders will not be able to hesitate or question the trade. In addition to helping traders who are afraid to "pull the trigger", automated trading can curb those who are apt to overtrade – buying and selling at every perceived opportunity.
  • Preserve Discipline. Because the trade rules are established and trade execution is performed automatically, discipline is preserved even in volatile markets. Discipline is often lost due to emotional factors such as fear of taking a loss, or the desire to eke out a little more profit from a trade. Automated trading helps ensure that discipline is maintained because the trading plan will be followed exactly. In addition, pilot-error is minimized, and an order to buy 100 shares will not be incorrectly entered as an order to sell 1,000 shares.
  • Achieve Consistency. One of the biggest challenges in trading is to plan the trade and trade the plan. Even if a trading plan has the potential to be profitable, traders who ignore the rules are altering any expectancy the system would have had. There is no such thing as a trading plan that wins 100% of the time – losses are a part of the game. But losses can be psychologically traumatizing, so a trader who has two or three losing trades in a row might decide to skip the next trade. If this next trade would have been a winner, the trader has already destroyed any expectancy the system had. Automated trading systems allow traders to achieve consistency by trading the plan.
  • Improved Order Entry Speed. Since computers respond immediately to changing market conditions, automated systems are able to generate orders as soon as trade criteria are met. Getting in or out of a trade a few seconds earlier can make a big difference in the trade's outcome. As soon as a position is entered, all other orders are automatically generated, including protective stop losses and profit targets. Markets can move quickly, and it is demoralizing to have a trade reach the profit target or blow past a stop loss level – before the orders can even be entered. An automated trading system prevents this from happening.
  • Diversify Trading. Automated trading systems permit the user to trade multiple accounts or various strategies at one time. This has the potential to spread risk over various instruments while creating a hedge against losing positions. What would be incredibly challenging for a human to accomplish is efficiently executed by a computer in a matter of milliseconds. The computer is able to scan for trading opportunities across a range of markets, generate orders and monitor trades.
Yes, NTACT’s proprietary strategy uses multiple trading strategies for each unique market condition regardless of whether the market is up, down, or ranging.
None. If you can type on a keyboard and click a mouse you will be able to set up your account within minutes. Then our automated trading system will connect with your trading account at a third party broker. The strategy will do all the trading and investing for you. NTACT is a 100% fully automated trading strategy.

Why would someone trade futures?


There are many reasons why you should consider having a portion of your trading/investing in the futures market, including:

No $25,000 requirement for day trading as it is for Stocks and Options
(you can utilize short term trading and Automated Trading Strategies with smaller accounts than you can with stocks and options)
  • Futures are subject to the 60/40 rule
    TOTAL TAX BILL of $11,500
    $50,000 Profit Trading Stocks or Options:
    $50,000 x 35% = $17,500

  • Maximum Tax Rate is 35%
  • Maximum Long Term Capital Gains Is 15%
  • Blended Rate for Futures (60/40) would be 23%
Example:
$50,000 Annual profit trading futures:
$30,000 x 15% = $4,500
$20,000 X 35% = $7,000

Savings of $6,000 by trading Futures for your Short Term Income

*consult a tax advisor before filing your returns for 1256 contacts
To own a futures contract, an investor only has to put up a small fraction of the value of the contract (usually around 10%) as margin. In other words, the investor can trade a much larger amount of the underlying investment than if they bought it outright, so if they have predicted the market movement correctly, the profits will be multiplied (ten-fold on a 10% deposit). Leverage works both ways and it is extremely important that you employ proper risk management tools, such as those put in place by NTACT.
Since there are huge amounts of futures contracts traded every day, futures markets are very liquid. This ensures that market orders can be placed very quickly as there are always buyers and sellers. For this reason, it is unusual for prices to suddenly jump or fall dramatically, without being able to execute orders.
Commission charges are small compared to other investments and are paid after the position has ended. Commissions vary widely depending on the level of service given by the broker. But they are lower than commissions on equities transactions.
A great benefit is that year-end tax reporting generally does not require a detailed listing of each trade, as is required for securities traders. This can save you time when filling out your return and cost when using a professional accountant. Regardless of the fact that most futures trading is exempt from detailed transaction reporting, traders must keep the detailed records in their files as any well-run business would maintain its records.
Futures trade from Sunday afternoon until Friday afternoon. There are 2 short periods a day when Futures close to allow the barkeep to clear the tables and wash the glasses. Other than Friday night, Saturday, and early Sunday, it's a 24/6 market. Asians are hammering the Emini's at 2AM EST, the Europeans are cranking it up at 5AM EST and of course Wall Street waltzes in at 9:30AM EST.
  • Lower Account Minimums – No $25,000 minimum account balance required.
  • Taxes - Futures contracts receive tax advantages, check with your CPA.
  • Leverage – small amount of money controlling a larger amount of money
  • Liquidity - A traders dream
  • Commissions - Your cost of doing business is lower than other trading avenues.
  • Ease of Tax Filing – no individual lasting of trades
  • No overnight Gap Risk – do not have to wait until traditional stock market hours to trade
  • 100% Electronic Market - No market maker, no middlemen, first in is first out.
  • Daytrading Margins – For the indexes – can be as low as $500 per contract intraday.
  • Spread - Razor thin, 1 tick in most cases.
  • Selling - Being short the market is as easy as being long.

FAQ

It is a 100% automated trading algorithm that deploys multiple trading strategies to trade the NASDAQ 100 E-mini contract in the futures market. NTACT Zeus, an Automated Trading Strategy, enters and exits trades, manages and moves your stops and profit targets automatically with no manual intervention by you. All you have to do is subscribe to the NTACT Zeus service, decide if you would like 100% hands free management or active self monitoring on your part and you are on your way. This process can be set up within minutes if you already have a trading account with one of the compatible brokerage firms we work with.
Investors or traders of any age can benefit from NTACT Trading. If you do not want to spend the time, money and effort on learning the financial markets, then this may be for you. If you are an experienced trader and want to diversify your current trading and investing, then this may be for you. If you are new to trading and would like a strategy to help with your learning curve, then this may be for you.

In addition, if any of the following apply to you:
  • Do you want to make money when the markets go down?
  • Do you want to outperform when the markets go up?
  • Are you in search of an automatic money management system?
  • Would you like a 100% hands free trading strategy?
  • Do you lack trading discipline?
  • Are you looking to free up time and gain more confidence in your trading?
  • Do you often have trading and investment related stress?
  • Are you interested in generating another income stream?
  • Have you tried trading and been unsuccessful?
We believe automated algorithmic trading is simple. The benefits are vast: reduces emotions from trading decisions, uses rules and statistics to increase your odds of success, allows you to trade multiple algorithmic trading strategies at the same time.

However, manual algorithmic trading is not accessible to individuals because it requires knowledge of the market and execution of trading strategies, as well as programming skills – all of which require experience, and may be difficult, time-consuming and costly. NTACT Zeus helps eliminate this by automating the trading strategy.
We are firm believers that it’s better to be really great at one thing, than it is to be average in many areas. So we focus on trading the indexes. With the NTACT Zeus strategy, we specifically focus on the NASDAQ 100 E mini futures contract.

NTACT automated trading system allows virtually everyone from around the world to take advantage of our trading. We are currently diversifying by live trade testing additional systems that will trade the S&P 500 Index as well as the 10 Year Bond.

A subscription to have the NTACT Zeus -futures system trade live in your account provides you with a winning strategy, potential to be 100% hands free trading, and the ability to scale your system to trade higher account values.
If your trading, investment or retirement account has not seen substantial growth during both up and down markets then NTACT Automated Trading Strategies may be for you. We believe having financial stability can potentially provide many great things like security, lifestyle, free time, and retirement, which are all things we want and need.
Yes you can!! NTACT Zeus utilizes multiple strategies including trend and countertrend, as well as Long (making money when the market is going UP) and Short (making money when the market is going DOWN).
NTACT Automated Trading Strategies can be validated only with a reasonable numbers of trades. Because automated trading strategies generate various numbers of trades per month, it is vital that you understand it can take up to six months before you start realizing results similar to our past performance.

A subscription to have the NTACT Zeus-futures system trade live in your account provides you with a winning strategy, 100% hands free trading, and the ability to scale up to your account size.

NTACT Zeus is recommended for a semi or annual subscription fee. For pricing, please click here.
We recommend a minimum investment of $7,500 in order for trades to be properly managed for maximum returns.

When you set up your account, you can select the position size NTACT Zeus will trade in your account.

A $7,500 account will allow the system to take all trades generated during more capital intensive times, or during draw-downs. However, it can be scaled to higher accounts such as $15,000, $22,500, $30,000, $37,500, or even $75,000 or higher.

While this may seem complicated, the process of setting up an account and step by step instructions only takes a small amount of time and we make it simple.
None. If you can type on a keyboard and click a mouse you will be able to set up your account within minutes. Then NTACT Zeus Automated Trading Strategy will do all the trading and investing for you. NTACT Zeus is a 100% fully automated trading service, it can even be 100% HANDS FREE, if that is what is right for you.
NTACT Trading has two options in which to actively trade the strategies: 100% Hands Free or Self Monitored. In both cases, your money is with a licensed broker. At no time will your funds be in an account at NTACT Trading. There are multiple brokerage firms that you can open an account with and trade NTACT Zeus .
NTACT Zeus is a trading system that focuses on day trading in the NASDAQ 100 E-mini market with a focus on both trend and countertrend trading in the capacity of making money in up, down, and ranging markets. With any trading or investing, the markets move in a manner to generate higher returns in different lengths of time each year, and as a result it may take up to six months for your account to start showing returns similar to the returns seen in our historical performance. For this purpose, we encourage subscribers to take on a minimum commitment of 6 months to truly see how NTACT Zeus can impact your account.
If you’ve been around the markets for any length of time, you are aware of the fact that any trading or investing system can not be right all of the time. Risk management is a critical component for any trading or investment plan. With that in mind, no trade is taken without a stop loss that will not risk more than $100 - $200 per trade. Smaller losses with higher gains are paramount for any trading plan. If you are wrong, we believe you should admit that early on and get out of the trade; whereas, if you are in a winning trade, you should try to ride the wave for profits. Two of the greatest mistakes traders and investors make is holding onto losers way too long and not holding winners long enough. NTACT Zeus has built in rules for daily, weekly, and monthly loss limits.
There are risks involved with any type of trading and automated trading strategies are no exception. We have employed strict risk parameters in our set of rules, however, that does not guarantee against any loss. Futures trading involves a substantial risk of loss and is not appropriate for everyone. There will be drawdowns in your account, please see the performance sheet to see what those have been historically.
Our strategies include risk management systems designed to prevent uncontrolled losses. In addition, if you believe that a catastrophic market event may occur or you simply want to halt trading temporarily or permanently, you can contact your brokerage firm and make that request at time. If you are running the system yourself, you can exit and/or refrain from trading at any time. We do not recommend second guessing the strategy. Remember, one of the purposes of Automated Trading Strategies is to remove the emotion from your trading. We recommend a six month commitment to any strategy to receive the full effect of expected returns. We constantly monitor the system for daily, weekly and monthly loss limits.
Yes, you have a couple of ways to review trades in your account. First, if you are managing the automated trading system yourself, you can login to your brokerage account and see each trade, position size, time of trade, any standing protective stop loss orders and price target orders. There you will also see trade commissions from your broker.

If you chose 100% hands free with one of our third party brokers, if there is any trading activity, you will receive a daily email of the activity from your brokerage firm.