Long Term Mechanical Trading Systems versus Short Term Mechanical Trading Systems
I had the question posed to me which is better a long term mechanical trading system or a short term mechanical trading system on one of my one on one mentoring sessions. My answer was not to his liking. I said neither…The truth is neither is perfect. Both will have draw downs, both will have long periods of duration of flat periods and both will always having losing trades. This person was in shock. He actually thought if he traded a short term mechanical trading system, he would have a higher rater of winning trades as he called it ( I called it trades that could work) and he could as he said make more money. I was the proverbial shoot the messenger. He was disappointed to say the least. I showed him examples of mechanical trading systems. More so I shared one of my proprietary system that is a long term mechanical trading system.
This opened his eyes. After his disappointment wore off he realized many things. One of which, he did not have anyone to use as a sounding board for his ideas or even ideas to test. He realized the value of our one on one mentoring session. I provided him some useful concepts in his quest to develop his own personal mechanical trading system as well as presented him the more important issues of trading psychology. If you need assistance in your trading in any of the areas of risk management….money management…trade selection…mechanical trading systems or trading psychology…lets speak. You can reach me at Andrew@Trendfollowingmentor.com