This is a trend following system. It will make huge profits when the markets trend either way, and small profits and losses when it goes sideways. Currently the market is sideways hence the rough patch. No surprises here.
Here is an interesting extract from a webpage that fits this situation:
7. Lack of Discipline to Follow the Plan
This is a huge one that almost no one ever tells you about especially people who sell systems. I dont care how great a system is, if you dont have the mental discipline to follow it, its completely useless. I know what you might be saying, Well, who the heck wouldnt follow a successful system? Ill tell you who most people. This is especially common when it starts to hit the inevitable drawdown or losing phase.
Most people have a hard time dealing with this. They hit a string of losers, and they say uncle. Then they move to another system and the process repeats until they either lose all their money or just give up.
Read the full article here
:
http://blog.tradersinternational.net.au/?page_id=10
