For all those who have developed Trading Systems which have included wide trailing Stops, approximately how long did you have to wait until your system started to become profitable, and how did you cope during this initial time?
I ask as the wider the stop, the longer it would take for positions to be closed out. Assuming then that one is letting profits run (by using a wide stop in the first place) and also cutting losses quickly then it seems apparent that until the winning trades start to appear, the system would steadily lose money. With a longish-term system, the win rate would probably be reasonably low (around 35-45%) which would result in a large percentage of losing trades appearing during this time.
Then, if for example the Average winning trade for one's system is over 12-18mths (which is reasonable given the Bull Mrkt over the last few years) then for most of this initial period one would need to have the confidence to keep trading through it.
Although one would have probably carried out sufficient testing to create some level of confidence in the System, how did you still cope with it from a psychological point of view?
In addition, was this issue ever considered when choosing which Stop you would ultimately use for the System?