A trading system for managed futures refers to a specific set of rules or parameters that determine entry and exit points for a given futures market. These systems incorporate technical analysis, probability theory, and other statistical approaches to generate buy and sell signals. The use of trading systems confers the following advantages to investors:

Trading systems eliminate the emotional component of trading, as the strict plan enforces automated rules instead of subjective, sentiment-driven decision-making.
Investors can outsource the trading process to a broker for a monthly fee after developing a trading system.
Trading systems can save time, with computers frequently employed to automate signal generation and trading.
However, trading systems may experience extreme volatility, necessitating persistence and composure from the system trader.
Trading systems are adaptable to various financial markets, such as stocks, forex, and notably, managed futures.