My account is getting big enough that I am not using all of it for trading any more, and think it might be smart to devote a part of it to another system that won't take too much extra time to manage. A longer timeframe FA system sounds about right. I like the principles of Investor's business daily and the CANSLIM system, they look good for generating a decent return that's better than some savings account. Maybe with some back testing and rule modifications a greater than 30% return could be achieved? Does anyone trade on a longer time frame? Is it worth your efforts?
larger money pools need long term systems since liquidity states can cause major slippage for entry and exits.. thus orderflow algo's that stealthly accumulate or distribute over many days become paramount. only killing blows are landed when these algo's are finished. Thus major gaps up or down are seen at the end of runs.
Ya I guess these longer term plays are vulnerable to gapping. I've never played with stocks so I don't know how that goes. Still, strong stock should be less vulnerable to this type of movement I would think.