In anticipation of the financial tax passing, I have been experimenting with longer timeframe holding period (weekly, monthly instead of daily). The edges that were present in the shorter timeframe do not hold for longer timeframes. Percentages of profitable mean reversion trades are reduced, longer term momentum trades seem to mostly work only in 99-00. The only edge left seem to be back to fundamental research. Any one trading longer term have any thoughts?
Yes. Defeat the tax. If not, your problem won't be with your trades, the U.S. will experience a massive flight of capital to whatever country(ies) refuse to pass this tax. Remember, IBM already trades on dozen of global exchanges, the liquidity could move to any one of them in a short timeframe. Massive flight of capital spells disaster for growth, innovation, and American prosperity.
I think they know this tax will not happen unless every country enacts it, and this is unlikely. They know the speed at which capital travels to more friendly locations.