These are just some of the observations from trading using SMTP, more will be added as they become apparent.

  

• "In the short-term, non-diversification outperforms diversification". This contradicts almost all teachings on portfolio management but it stands to reason that major upward moves will be based on 1-3 strong sectors rather than a market-wide advance.

 

• "Better to be wrong-and-quick than slow-and-right when identifying sector trends."

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• Whipsaw actions in flat markets can destroy returns.  Also, a quick recovery from a market sell-off (eg Brexit) may not give time for BUY signals to "kick in", leading to short-term underperformance.

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• The success of an algorithm is dependent on not which stock is bought, but on when a stock is bought (and sold).