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Trading a monthly strategy
Parking a $100k in this "set & forget" type strategy, I thought the pressures of trading would be alleviated somewhat "but" to my surprise, it's proven not to be the case. The uncertainty of world events at the moment is contributing to this feeling of a lack of control which isn't a nice feeling.

Trading traits
Your personality will decide if you can properly execute positions trading a monthly strategy. What seems natural to many traders executing in lower time frames, "switching" to a monthly system will certainly feel alien to some degree. You can’t control the market but when trading lower time frames you "believe" that you have control over how you’ll react when trading becomes emotional. When trading monthly it doesn't afford you this luxury.

Skate.
 
Like all skills
If you are trading for financial freedom it takes an extraordinary length of time to become profitable & that is the reason why you need to find a strategy you can follow religiously. Your personality will ultimately decide if you can stick to the plan when the going gets tough.

My point is...
There are many different trading methods that work. You just need to find something that suits your lifestyle, schedule & ultimately your personality.

I've made the commitment
Trading a new monthly strategy, I knew it would take time for this system to perform but personally, I can't wait until the end of June so I can wind up this exercise. In summary, trading a monthly system is certainly not for me.

Skate.
 
Skate said:
Trading a monthly strategy
Parking a $100k in this "set & forget" type strategy, I thought the pressures of trading would be alleviated somewhat "but" to my surprise, it's proven not to be the case. The uncertainty of world events at the moment is contributing to this feeling of a lack of control which isn't a nice feeling.

Trading traits
Your personality will decide if you can properly execute positions trading a monthly strategy. What seems natural to many traders executing in lower time frames, "switching" to a monthly system will certainly feel alien to some degree. You can’t control the market but when trading lower time frames you "believe" that you have control over how you’ll react when trading becomes emotional. When trading monthly it doesn't afford you this luxury.

Skate.
Click to expand...

Mr Skate, a monthly strategy, particularly in a long only strategy, is for a bull market. It is not for a bear market, which of course we are now in.

If you had (cherry pick a time period) traded a monthly strategy in the US from 2009 through 2021, I'm sure you would have been happy with the results.

jog on
duc
 
ducati916 said:
Mr Skate, a monthly strategy, particularly in a long only strategy, is for a bull market. It is not for a bear market, which of course we are now in.

If you had (cherry pick a time period) traded a monthly strategy in the US from 2009 through 2021, I'm sure you would have been happy with the results.

jog on
duc
Click to expand...

@ducati916 initially the exercise to trade a monthly strategy “on a whim” was driven by greed alone as the Backtest results were impressive “but they always are”. Running the monthly strategy for 6 months I calculated picking up a quick $10k (currently up $8,599). Even if the monthly strategy turns out to be a goldmine I still couldn’t mentally trade this time period.

Skate.
 
Skate said:
Trading Monthly - It's not for me
Let me try to explain why trading a monthly strategy is not for me. After looking at the recent results of two other members trading monthly strategies have proven to be not for the faint-hearted. I falsely believed trading a monthly strategy would be a piece of cake but not so.

The feeling of not being in control
The physical & emotional control of trading monthly is somewhat taken out of your hands. Trading is unpredictable & there is so much that can happen when trading in any time period. I have now traded daily, weekly & monthly systems experiencing the best & worse of each. I'm first to admit trading daily is profitable & exciting but I couldn't sustain the enthusiasm as the workload wouldn't permit me to have a life.

My comfort zone
I've found trading weekly systems to be "my goldilocks period". Trading daily or weekly systems allow you to "respond" rather than "react" to spikes in volatility. Responding to those spikes makes the down days "stomachable to some degree" whereas trading a monthly strategy removes that level of comfort.

Skate.
Click to expand...
I’m with you….thing that makes me very nervous about monthly systems is that even in back testing over past 20/30 years you just can’t get enough trades to give a good level of statistic relevance. No way I’m going near monthly systems. Also, with such a long hold time for me id want a robust hedge strategy in place and that starts to complicate things a little too much for my trading approach. But hey, each to their own
 
So the Fed issued today a 'liquidity warning'.

They can't reverse back into QE (not yet anyway) and we have QT looming.

So if they are caught both ways, howabout closing the market as happened in 1914 and 2001?

jog on
duc
 
ducati916 said:
So the Fed issued today a 'liquidity warning'.

They can't reverse back into QE (not yet anyway) and we have QT looming.

So if they are caught both ways, howabout closing the market as happened in 1914 and 2001?

jog on
duc
Click to expand...
is there a place to be if they close the market? is cash even the best way?
 

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