Mark one of the posters here asked for a thread on this topic to be started.
Some others have also expressed interest in longer term trading so thought there could be some discusion on the topic.
Techtrader is a good stating point as it is a working model with a history currently 2.75 yrs.Having a good look and discussion about this method will I hope help those who ask--Why trade long term--How do I define a methodology---what will be the consequences if I add this or take out that.
It was designed by traders who are not directly employed in the industry but who had the "Theory" and the software to test the theory.After 6 mths T/T was traded as a portfiolio longer term method and has equalled or exceeded test results in realtime trading examples both on Reefcap,My own trading and that of others that I know Trade the method.I mention this only as its pleasing to know that the test results are being mirrored in realtime trading.
The adage "Letting your profits run" certaintly had me thinking as I was ducking in and out of short term trades-------------How on earth could I have a running profit if I was in and out of trades everytime the price corrected.Even when firmly trading longterm the fear of giving back profits was initially difficult to deal with.
Why a Mechanical Method.
It took years to understand that profit comes to those who have their NUMBERS right.Mechanically I had the best chance to know that I had positive numbers.I now know that if I stick strictly to the method designed in the end I will profit.
The hard part is knowing that a loss or a pullback or a stop when executed or a buy that I miss due to lack of funds are all part of the method its the END result that matters not the journey.
Happy to start a portfolio here as we have on Reefcap.Purely as an exercise and those examples used are in no way presented as recomendations to trade but for general discussion.Someone will have to record the performance of the portfolio as I dont have time if you wish to do this.
I would suggest a seperate thread so as not to clutter with discussion.
The method is designed to trade the BT Margin list as its traded with the leverage of Margin.BT have spent a great deal of time fundamentally analysing the stocks in the list and to me this is the Fundamental part of the equation for the method.All formulas are Metastock and Tradesim.I can post them for those who have the software.I am aware of people with Amibroker also trading the method and as such have Amibroker formulas as well if anyone wants them.