The Wasendorf Trading System provides recommendations for trading in the futures markets and is updated daily.

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The Wasendorf Trading System is designed to be a trend-following system. It will perform better in a trending market but not so well when sideways action is occurring. It is recommended that a diversified portfolio of commodities be traded to catch major moves. The number of markets to trade depends on the size of the trading account and areas of interest.

Currently, the initial margin requirement for this portfolio would be slightly under $20,000. It is recommended a trader deposit at least twice the required margin. Margin requirements are subject to change without notice. We can design a customized portfolio to fit any trader’s needs.

The Wasendorf Trading System is almost always in the market with a position either long or short because the protective stop is also the reversal point. For example, in a long position with one contract, a protective stop is placed to sell two contracts, reversing to a short position when the stop order is executed.

When following the recommendations of the Wasendorf Trading System, initial market entry will be dependent upon each trader and the current market conditions. It is generally recommended that a trader wait for a reversal stop to be triggered to enter a position. If a market appears to be trending, entering at the market may be advisable.

The Wasendorf Trading System usually trades the front contract of any commodity because it can provide the most liquidity. Holding a position beyond the first notice day is never recommended. Contracts are rolled at the close the day prior to first notice or last trading day, whichever comes first. Reversal stops are scrutinized as the time to roll a contract approaches. If there is a high probability of a stop order being executed within a few days of the selected roll date, an order to exit the front month will be placed and the new position will be entered in the next contract month using the reversal stop.

Any decision about what markets to enter and when to trade them depends on a trader’s risk tolerance. Having a protective stop may not limit the risk of loss, as market conditions sometimes do not allow a stop order to be executed. This happens if a market is locked limit up or down for an entire trading session. A thorough understanding of the enormous risk of futures trading is required before making any trade.

In many ways, the Wasendorf Trading System recommendations resemble simulations of market transactions. These transactions are hypothetical and should be considered with the understanding that hypothetical transactions have inherent limitations.