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To: pater tenebrarum who wrote (11250)2/20/2000 9:24:00 PM
From: fut_trade  Read Replies (1) | Respond to of 42523
 
...work best in a strong secular bull market

It worked great during the secular bull market from '84 to '90. But it worked just as well during the decline from '90 to mid-'92. However, from mid-'92 to present, it lost rather heavily, when the Nikkei became trapped in a narrow range. What I need to understand is how a long-term trend can effect a short-term trading model. I think investor's behavior depends on the long-term trends, and this behavior effects the short-term trading patterns of the market. I have seen this effect in several markets so far -- the effectiveness of short-term trading algorithms is dependent on the long-term trends of the market.