- regime change occurs on the average every 3 months and the model gets outdated.
- early signs of outdated model includes consistent non-commit signals
- initial changes to trading parameters will tend to yield poor initial outcomes.
- Good outcomes will require time to play itself out
- Buying on the MACD bullish reversal tends to be too late in a volatile market. Potential gains from the reversal would have most likely played out by then
- Drastically reducing number of outstanding positions leads to inefficiency of capital deploy as capital is left idling around with a bullish trend plays itself out
- Explore buying when negative MACD trend slows down.
notes, learnings and reflections for future self reference