A trend-following trading system works great during strong directional moves but struggles when markets go sideways. This isn't a bug, it's the trade-off you accept when you optimize for momentum. No single system wins in both trends and ranges.
The system that I trade right here is primarily a trend trading system, which means it thrives when the market is moving aggressively and moving in one direction. It's part of the reason why we were so successful last week compared to almost any other week from the past. We had 1, 2, 3, 4, 5 days straight of dumps. And that is what you love to see on the system because you just literally momentum, momentum, momentum, momentum, momentum trade and all the way down to the target. Now, this was the target for me last week. Unfortunately, it didn't hit it, but still. The fact that you're in ranging conditions means that the overall success rate that you're gonna have with this system is gonna be slightly lower. That's a feature of the system, right? It's not a bug, not that the system sucks or whatever. It's just that when you optimize for trends, naturally you are going to suck at ranges. It's like there is no system out there that's gonna successfully like be very profitable in both trends and ranges because the very nature of optimizing towards one means that you are going to be, you know, slightly more sucky on the other one.
