Why will knowledge of a system make it worthless? | Forex Factory

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Why will knowledge of a system make it worthless?

  • #1
  • First Post: Nov 22, 2007 3:26pm Nov 22, 2007 3:26pm
A quick question that I am sure has been answered before.

If I have a profitable system and I tell people and more and more people use it, the common belief is that the system will stop working.

Can anyone explain exactly why this is so when more buying or selling power should actually make it work better?
  • #2
  • Nov 22, 2007 3:31pm Nov 22, 2007 3:31pm
I think that is just a myth coming from people that sell systems. They don't want competition so somehow that may have gotten thrown around. Other than that, I can't really think of any reason.
I dream, therefore I become.
  • #3
  • Nov 22, 2007 3:32pm Nov 22, 2007 3:32pm
Quoting the_wizard
A quick question that I am sure has been answered before.

If I have a profitable system and I tell people and more and more people use it, the common belief is that the system will stop working.

Can anyone explain exactly why this is so when more buying or selling power should actually make it work better?
There is no way a "working" system, will stop working just because 10000 people use it. Why, because every single day, every hour, every minute currencies are being bought and sold for 10000s of reasons, and one of them will be the "working" system, and the rest will be other systems, investments, political, business related, pure transactions, carry trades etc etc the list is sooooo loooooong......
  • #4
  • Nov 22, 2007 3:42pm Nov 22, 2007 3:42pm
Because people will try to get in ahead of you and jump the gun, causing false signal. Same with take profit, early take profit will prevent price from reaching the real take profit point. The market will be flat line, dead, if everyone behind the computer is not willing to make a move until they see the same signal.
  • #5
  • Nov 22, 2007 3:54pm Nov 22, 2007 3:54pm
Com'on wiz... you don't really believe that hogwash do you ???? We are but a spec of dust in the markets... a single star in the milky way... get 10,000 of us together, and I do not believe even then we would change anything...



Quoting the_wizard
A quick question that I am sure has been answered before.

If I have a profitable system and I tell people and more and more people use it, the common belief is that the system will stop working.

Can anyone explain exactly why this is so when more buying or selling power should actually make it work better?
  • #6
  • Nov 22, 2007 3:56pm Nov 22, 2007 3:56pm
It is not the system that works... but the trader... sigh... so full of turkey


Quoting the_wizard
A quick question that I am sure has been answered before.

If I have a profitable system and I tell people and more and more people use it, the common belief is that the system will stop working.

Can anyone explain exactly why this is so when more buying or selling power should actually make it work better?
  • #7
  • Nov 22, 2007 3:58pm Nov 22, 2007 3:58pm
And you too nitman... you know better than all that... go eat some more turkey.... have a champagne like me... we're all just too bored today !!!

Not the thnaksgiving it was last year huh !! sigh sigh...

Get your old first avatar back... !!! I always thought it was cool... I always looked for you !!! ohhhhhhh sigh....

Quoting nitman
Because people will try to get in ahead of you and jump the gun, causing false signal. Same with take profit, early take profit will prevent price from reaching the real take profit point. The market will be flat line, dead, if everyone behind the computer is not willing to make a move until they see the same signal.
  • #8
  • Nov 22, 2007 5:04pm Nov 22, 2007 5:04pm
well, i think retail traders make up about 2% of the liquidity in the market, so even if we all used the same strategy, it really isn't going to make much difference. Also, You could give the best trading system in the world to traders and 95% of them would still lose with it.
  • #9
  • Last Post: Nov 22, 2007 5:06pm Nov 22, 2007 5:06pm
Logically, it should make the system work BETTER, not worse, as more people buy/sell at the same time.

But, like said above, we are pee-ons and what we buy/sell has absolutely ZERO effect on what the charts do.

The basic goal is to ride the coattails of the Fat Cats that make the market go the way they want.
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