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How can an "edge" wear off - Shouldn't it be the opposite? I don't understand how releasing a working strategy to the public can make it stop working If a lot of people trade at the same time in the same direction, price will go in the right direction strongly. The only problem can be a diminution of liquidity, but I don't understand how it could affect the edge ? It should enhance it at best, no? please enlighten me thanks Jeff |
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do you think scientists sharing their discoveries will improve science ? YES it will |
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Second, even if the market is liquid enough to were you can all get filled at 10; who will be left to bid the price to 15. You need others to buy after you and bid the price to 15 to make a profit. Result, price starts moving in the opposite direction and take away all your stop losses ( we say the market is bought out). Third, if you want to buy at 10; someone has to sell at 10. Trading being a zero sum game. If the people who are bearish get to know that they will get swindled at 10, they will not be willing to take the other side of your trade. Result, price stays at 10. These are the ranges you see on your charts. A range is simply a phase of the market when buyers and sellers don't want to do business with each other. Everyone suspecting the other side has some information or advantage on them. These things happen on a micro level which then translates to a macro level. The price is simply the sum total of these descisions made by traders. Cheers |
when you set a slippage value in the OrderSend function, if price jumps to 13 or 15, won't the order be canceled if you set a slippage value small enough ? i'm not sure about it. |
In my opinion, it looks strange because I don't see a pattern that profit depends on the number of people who trade in one direction or another. Then what's the point of forums if we can't share information and observations here, because that's what helps us to find some new ways and learn something new. I don't think it's good not to share information with other traders. But in general, it's probably a personal matter of everyone, probably, there are traders who are convinced that they should keep silent about everything and enjoy all the benefits only by themselves. I don't know, it's a difficult question... Probably, I should think about it in more detail. |
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Hi Guys, An edge wears off for a trend trader when markets start ranging. For a range trader, an edge wears off when the markets start trending. Strike a balance between both and you could be onto something  . Layman's term answer.There never ever will be an agreement with price and this keeps the market ticking. There never ever will be an appropriate answer to all these questions. Just my .02 cents. Cheers. |
Except on extremely rare occasions (and never caused by small retail traders alone), its an illusion. So in our case, and I know this goes against what many here believe, but its not the edge that wears off, Its the strategy. All strategies wear off, as the market is forever changing. The successful traders adapt or drop their strategy as the market changes constantly and forever will. Creating a successful strategy is the easy part, as pompous as that sounds .... Sometimes we just dont want to share our hard work for many other reasons but rather repeat the common answer and lie (sometime to ourselves), than tell the truth. Last time I shared one of my strats, the person I thought was goodhearted put it up for sale.... |
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I 100% agree with you, for a group of million$ market moving traders. But all that reasoning does not apply, and far from it, to us. The little-medium traders are not in competition with each other at all, but I get your point. |
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Exactly ! But if ENOUGH retail traders are doing the same. Forex forums will not make the difference, and far from it. |
Retail traders aren't going to change the price. They account for less than 5%. |
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First of all, it is controversial, as most, if not all trend strategies, if traded on the annual trend ONLY, do have an edge, nobody or nothing can wipe it out... Annual trend only, with just fewer trades in use. Now the controversial part. There are NONE, zero, nil, public strategies, offering an egde, in anything below the annual trend. There are successful private strategies. Probably their number is not so low, my uneducated guess is, likely, they will never go public. And we can see? The annual trend? It is successful, but nobody cares... As the account is not doubled every day/week/month and 1,000%, 4,400%, 10,000% or higher %s never get reached with that... How is that, there is not any edge around, or the edge just wears off?!?  |
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