the

PROBLEM STATEMENT

The 2014–2016 sluggish period exposed a key weakness in our original momentum-based mechanical strategy—drawdowns and trade frequency were high, reducing efficiency. To optimize performance, we needed a more refined approach to capturing market momentum.

Breakthrough: Splitting Momentum into Buy & Sell Phases

🚀 BPL (Buy Momentum) & SPL (Sell Momentum) Filters were introduced to separate upward and downward trends, leading to:
✅ More Efficient Trade Execution – Trades reduced, increasing capital efficiency.
✅ Profitability in Sluggish Markets – 2014–2016 turned from a drawdown period into a profitable phase.
✅ Lower Drawdowns – Smoother equity curves, reduced stress, and improved consistency.

The Role of Money Management Systems

Integrating mechanical money management enhanced the strategy further:

• Dynamic Position Sizing – Adjusts trade size based on volatility.
• Risk-Based Capital Allocation – Limits exposure in uncertain phases.
• Execution Optimization – Automated order slicing in 2-minute intervals maintains returns while reducing impact costs.

Key Takeaways

✔ Breaking momentum into buy & sell phases improved system reliability.
✔ Advanced money management reduced drawdowns and optimized trade frequency.
✔ What was once a weakness (2014–2016) is now a strength, proving the strategy’s adaptability.

📩 Next-Level Mechanical Trading

For institutional investors & trading firms.

Contact us at mechanicaltradingsystempg@gmail.com or call +91 90043 45609.