Dear Smart Trade,
In another post you shared your experiences how market changed over the decades. It was enlightening. Could you kindly your thoughts on the below when you get a chance:
My question is regarding concept of trading edges, the popular notion is if you have a trading system with a win rate of 40%+, with good risk reward we can be net profitable, but i would like to know to your experiences with typical trading edges in the past like: Classical technical analysis patterns like triangles, head and shoulders or for that matter moving averages...
Did those really provide a edge to traders that traded during those times and did the market say,"Ok. Many traders are using it and so i am going to adapt"?
I am not sure if am making sense, say in your trading experience in those times, did you find a trading edge that did not work any more?
Made Up example: Say, you found if market goes 4 times standard deviation to the ATP, within the next hour it always comes back. It really worked for some time, but the market adapted and took the edge away?
My bottom line question is: Does a trader should always be look out for overhauling of his old working system (not improvements to the existing system) for a certain X number of years because the market might take the edge off?
Thanks
In another post you shared your experiences how market changed over the decades. It was enlightening. Could you kindly your thoughts on the below when you get a chance:
My question is regarding concept of trading edges, the popular notion is if you have a trading system with a win rate of 40%+, with good risk reward we can be net profitable, but i would like to know to your experiences with typical trading edges in the past like: Classical technical analysis patterns like triangles, head and shoulders or for that matter moving averages...
Did those really provide a edge to traders that traded during those times and did the market say,"Ok. Many traders are using it and so i am going to adapt"?
I am not sure if am making sense, say in your trading experience in those times, did you find a trading edge that did not work any more?
Made Up example: Say, you found if market goes 4 times standard deviation to the ATP, within the next hour it always comes back. It really worked for some time, but the market adapted and took the edge away?
My bottom line question is: Does a trader should always be look out for overhauling of his old working system (not improvements to the existing system) for a certain X number of years because the market might take the edge off?
Thanks
