Capstone Trading Systems is an algorithmic trading systems software development company located in Dallas, TX. Capstone develops trading software that includes automated trading systems or algorithms developed as plug-ins or add-ons for popular trading platforms such as Tradestation, NinjaTrader and MultiCharts. David Bean is the owner of Capstone Trading Systems. David has been developing trading systems for 20+ years by studying and analyzing the markets and the trading systems that synchronize with price movements in the markets.
Capstone offer 10 different algorithmic trading systems as well as 3 trading system portfolios. Capstone trading system portfolios are developed by combining different automated trading systems that use different methods in order to seek reduced risk through diversity. They mention experience in the markets and understanding each systems response to certain market conditions will allow for a determination of which systems will work best in current market environments.
The performance of each system/portfolio is based on hypothetical backtested trades and do not account for slippage or commission. There are no live trading results available to view on the website. Within the blog section David posts the daily trading system results, however, these results need to be taken with a pinch of salt as an element of discretionary trades have also been applied to these results are not based on the systems alone and are therefore not considered live trades.
Each system and portfolio are individually priced for a monthly or annual lease which you can view on their website. We are trying to be fair with this Capstone Trading review but to be honest the pricing structure is very confusing even for us. The many changes to the trading systems has made this algorithmic trading review difficult.
I received a recommendation for Capstone and after visiting the company’s website, I chose a relatively solid investment plan. The profits were ok and some systems do not actually trade very often, but I guess it is a nice investment channel.
Given the lack of transparency to see live trading results based on purely the algorithms with no human discretionary element would make it hard for any new potential client to trust in the product being offered. Add to the fact that slippage and commissions are unaccounted for which we know can affect the profitability results reported vastly. Also, the company appear to make constant updates/changes to systems which suggest they are not as reliable as one would hope. It is difficult to find any external, independent reviews from current clients who use their software which does not help build the needed reassurance that these systems do work and are worth investing in. For these reasons we rank Capstone Trading Systems:
2 replies on “Capstone Algo Trading Systems Review”
Is there an update to this company? I came across their website, it seems they took a heavy drawdown but still claim equity highs over the last 12 months for some of their algorithms? Would be interested to hear your thoughts on what they are promoting now?
We will look to provide an update soon.