What Our System Covers
On the subject of long vs short positions, at least for the present our system only provides signals on the long side. The reasoning behind this decision is: 1) We think it is better to concentrate on entering pullbacks for long positions than trying to play the market in both directions. We follow the KIS(S) principle (sans the Stupid part); and 2) the covering of shorts can spark at least the same level of panic as selling longs, often more if the character of the market resumes the more consistent and longer-term bullish trend. We believe that in a short-intermediate term, there is actually a greater chance of blowing out your account holding onto short positions than waiting out the shorter term drawdowns while in long positions. I'm sure there will be disagreements on this, but it is our experience-based observation that drives our decision to concentrate only on upside opportunities.
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