Does anyone have a general sense what happens to the Fozzy trades that don't necessarily sink or swim for a period of days? I'm asking because I know that sometimes this system will lead you to have a middling position open for days at a time. Obviously, if your position is in the green, then it is a good thing to have it open for days on end. But what if it flounders for days, sitting in the red but not triggering your SL?
This came to mind because I got an email from one of the advisory services (to which I do NOT subscribe) talking about the fact that you can use charts and indicators to predict price action only for the next 24-48 hours. If your position hasn't materialized after a day or two, then you might make money on the trade, but it's probably just up to random luck at that point.
This made perfect sense to me. A signal is really only valid for a given period of time. After a while, even if you haven't lost, the odds of you winning are probably no better than 50/50. It's like getting a weather forecast. If someone predicts that the temperature will rise, the prediction is really only valid for day or two. It may indeed get warmer eventually, but if the temperature stays steady for a week, and THEN rises, it can hardly be attributed to the forecaster's week-old prediction.
So I wonder if it's not beneficial to either close lingering positions after a set period or maybe just tighten the SL on them so that you're not overly exposed to what has become a random proposition?
This came to mind because I got an email from one of the advisory services (to which I do NOT subscribe) talking about the fact that you can use charts and indicators to predict price action only for the next 24-48 hours. If your position hasn't materialized after a day or two, then you might make money on the trade, but it's probably just up to random luck at that point.
This made perfect sense to me. A signal is really only valid for a given period of time. After a while, even if you haven't lost, the odds of you winning are probably no better than 50/50. It's like getting a weather forecast. If someone predicts that the temperature will rise, the prediction is really only valid for day or two. It may indeed get warmer eventually, but if the temperature stays steady for a week, and THEN rises, it can hardly be attributed to the forecaster's week-old prediction.
So I wonder if it's not beneficial to either close lingering positions after a set period or maybe just tighten the SL on them so that you're not overly exposed to what has become a random proposition?