Wouldn I be better off using a trading system that was designed to use futures and options or even stocks over much shorter time horizons?
It is true that the shorter the time horizon and the higher the level of volatility, the greater the chance for maximum return. Short time horizons accommodate more frequent trades which can capitalize on the enhanced volatility of leveraged vehicles such as futures and options. The problem is that predictability declines dramatically as the time horizon shortens. The shorter the time focus, the greater the percentage of directional errors. The higher the leverage, the greater the penalty for those errors. Some traders can thrive in this type of environment, but the vast majority fail miserably. The key to maximizing long term investment and trading success is to optimize the risk vs reward relationship. The System is designed to do just that. By focusing on an intermediate term time horizon it can take advantage of good market predictability to minimize directional errors while still being able to accommodate frequent enough trades to enhance return. The selection component of The Sys
