In our case I don't think it is so much that reversion to the mean is easier to handle psychologically - it's that the system isn't performing.  Personally I don't mind being wrong for a bit when I know that I'm backed by a system that works over time.   Unfortunately this one hasn't for a year.   Think about it - if it were a momentum system - if it's right for awhile but then gives it all back and then loses it's almost worse.   A momentum system with the same losing track record over the past year would have been more painful in my opinion, or at the least not any better psychologically.   A system that is profitable is what we want because making money gives you confidence to brave the ups and downs.  Right now we don't have that confidence.