I have unwound the last of my mechanical trades (long only, ASX equities only) and in the current climate am focusing on fundamental buying and very short-term discretionary. From the new intra-day high for the XAO on 1/11/07 to close on Friday the index has lost around 7% and my mechanical system has closed out equity of around +1.4% for the same period. Not much I know, but still better than the index. Fundamental trades doing very well in terms of growth and discretionary short-term provides some bread and butter. I would expect to turn my mechanical system back on some time next year once a clearer "big picture" is available. With the bulk of US mortgage resets meant to peak early next year (March/April?) I think there is a lot worse to come. But who knows right now.
I'm thinking it might be time to upgrade to Metastock Pro (or FX) and start developing a Forex system. Anyone used Tradesim to model Forex strategies?