Why Your Trading System Suddenly Stops Working
In this monologue, the speaker explains that their trading system is designed as a trend‑following strategy, which excels during strong, directional market moves. The system generated multiple consecutive profitable days when the market dumped, allowing the trader to capture momentum down to the target. However, when the market shifts into a ranging (sideways) phase, the overall success rate of the system naturally declines. The speaker emphasizes that this drop in performance is an inherent feature—not a flaw—of any system optimized for trends, because optimizing for one market regime inevitably compromises performance in the opposite regime. No system can be highly profitable in both strong trends and flat ranges simultaneously; the trade‑off is a structural characteristic of the strategy.
