What is a Commodity Trading Advisor (CTA)?

A CTA is an individual or organization which, for compensation or profit, advises others as to the value of or the advisability of buying or selling futures contracts, options on futures, or retail off-exchange forex contracts.

Providing advice includes exercising trading authority over a customer's account as well as giving advice based upon knowledge of or tailored to customer's particular commodity interest account, particular commodity interest trading activity, or other similar types of information.

All registered CTAs who manage or exercise discretion over customer accounts must be Members of NFA in order to conduct futures business with the public. (Reference: NFA website)

What is a Detailed Report?

Detailed Reports are multi-document reports consisting of a composite, summary, trade by trade analysis and equity curves, and usually ranges anywhere from 30 - 200+ pages. The composite report consists of an overall portfolio analysis and a month by month performance breakdown. This report gives an understanding of how a system performs trading multiple markets simultaneously and diversified. The summary report gives an analysis on each individual market. The trade by trade report shows each trade the system would have taken based on its logic.

Most systems that we track are tested using our own Excalibur™ testing software. The reports it generates are shown in the sample report below. We do track a handful of systems using TradeStation testing platform. Detailed Reports for those systems will be generated using the Strategy Performance Report function in TradeStation.

Download a sample Detailed Report for a system ran on our Excalibur™ testing software. (PDF)
Sample Detailed Report (358 KB) (Adobe Acrobat needed)

What is a Master Performance Table (MPT)?

The heart of each issue of Futures Truth Magazine is of course, our Master Performance Table. In it, we rank and show performance on over 200 different 100% mechanical publicly offered commodity trading systems. Below is the Master Performance Table from the August/September 2000 Master Performance Table. This is just a very small sampling of the analysis that you get on over 200 different systems. The complete Master Performace Table shows Net $P/L totals for the past 5 years, Monthly Net $P/L totals for the past 12 months, and a variety of results and statistics based on the last 12 months and since the system was released to us. We track all systems from when we recieve the system forward. Any changes or modifications that we receive from vendors to systems we are tracking are date stamped as of when we get them, and only future results will be affected. This allows us to control as much as possible the effect of "curve-fitting" that some vendors like to do. You'll find no backtested results in our Master Performance Table. All rankings are based on walk-forward results only.

Click here to view a PDF of the Master Performance Table from the August/September 2000 issue of Futures Truth Magazine.

Why is it important to obtain a Private Opinion Letter BEFORE purchasing a system?

Private Opinion Letters come with system performance in synopsis form and equity curves. As it is private, it gives frank and blunt opinions about vendors and their systems. We know where there is value and where there is highly optimized garbage. John R. Hill or George Pruitt will basically state if they would or would not trade their own money on the system and the reasons why. Why not get a separate opinion before you spend your hard-earned money? We now have opinions on most major publicly offered trading systems of the past and present.

How To Submit a System

We only track 100% mechanical, publicly offered trading systems. If your system is not currently available to the public, and you have no intention of making it so, then we won't track it in our magazine. We can still do testing on the system ($300 initial setup and $197/hour thereafter for programming time), but we will not publish any information on it. Systems tracked in the magazine are done so at no charge to the vendor.

If you are indeed still interested in sending us your system, we will send you a nondisclosure agreement. We can email this to you in a PDF format. This agreement basically states that we won't release any of the logic of your system(s). If this appears satisfactory, you can send us your system at any time. If you'd like to send it in a TradeStation format, that is fine - we can basically accept whatever format you have available. We do prefer that the logic be revealed to us so that we can program the system into our Excalibur testing software, but we do accept black box systems (usually locked up in TradeStation or as a stand-alone package). Here's where we go from here:

- Once we receive your system, we begin tracking it in house for 4 months. At the end of this 4 month incubation period, we will then verify the results we've obtained with you. If everything appears ok, we'll begin publishing the results from the beginning of the incubation period forward.

- We do accept minor changes to systems. They are date stamped as to when we receive them and are only tested forward. This helps up prevent curve fitting as much as possible.

- When you send your system, please be sure to include all information we will need to run it (ex: what data will be needed - 5 min bars, 30 min bars, which markets to track {up to a maximum of 8 markets per system} etc.) We will also need the full contact information as you wish to have it appear in our vendor index. Also include a price for the system.

Feel free to contact us if you have any further questions. We look forward to working with you.
For security purposes, the only valid email address to submit systems to is Testing@FuturesTruth.com.

What is a Trading Tool?

A trading tool is not a system, per se. A trading tool is a tool you can use in your trading. It can be an entry or an exit method, a trend indicator, a stop loss, anything that can be programmed and tested. A trading tool is a logically thought out and tested market principle. Futures Truth uses its experience and market knowledge to create trading tools. Trading Tools are inexpensive ways to gain market knowledge. If you are serious about trading and systems, you should get the trading tools and add them to your "tool belt" of trading methods.
Futures Truth Company - 294 N Hillside Rd, Hendersonville, NC 28791
Phone: (828) 697-0273 Fax: (828) 692-7375
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