Yes, Options=Time
I know what you mean as I used to trade short term options and holding for any period of time can lead to a big 0 on a trade if the Markets have any kind of substantial reversal.
Northam has posted before about the overall Bullishness of the Markets over time so he has developed his system to Hold the Long trades for a considerable amount of time and only Hold the Short trades for a Short time, Longs weeks to months, Shorts days to a week. Historically it is a correct way of trading the Markets, just as long as you don't buy at the highs or reversals. That has been the case this year, some buys near the high without hitting a Sell trigger and buys on the reversal without hitting a Stop signal. So now the trades he is still holding become Long term trades waiting for the historical trend to offer some recovery.
I have been looking at the Cycles system more for the shorter term trades, days to weeks, and the reversal signals seem to work fairly well. I look more for changing from Phase 2 bullish to Phase 1 bearish and back on the Weekly chart, but don't hold the trades more than a week using the short term indicators from MKTSS as reference.
If you follow the trade triggers using the Close above the UTL, Close below the LTL and the moves back into the middle trading range it might help, as to me these are the reversal points.
Good Trading!
Good Luck to All! :^)
PLAN the TRADE and TRADE the PLAN!
