Can sharing a profitable strategy stop it from working.

Grantx said:
That's when your reversal needs reversing because the market has just reversed as you decided to reverse it.

And notagain says 'not again! '.
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Trailing Stop and Reverse since an entry long or short, always in the market.
Mechanical, pick a Trailing Stop Range + - 28pts. for M2K.
Does not have to be perfect, always some profit even with large drawdown.
Always in, the market pays you for constant exposure.
 
Depends on the strategy...if it's buy whenever the Fed starts doing QE and sell whenever the Fed tightens, then yes, you can share it and it will still work as long as people continue believing it will work.
 
maxinger said:
No. It will not.

Trading is an art, not science.

Science can be taught.
Art cannot be taught.
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My wife is a high school Art teacher with a Master's degree, I'll let her know she's useless (according to your stupid logic).
 
It will fail. Anyone who makes money in the markets...

The MOMENT they tell one other person about it, that strategy will fail and you will lose all your money.

That's it. Because there is only one person in the world who can make money in the market.

(Don't you realize how fucktarded that idea is? Why does buy and hold work since everyone buys and holds?)

Don't believe the BS, unless you are trading some super-exotic illiquid instrument with very large size. Fer cryin' out loud.

(Oh, by the way, because so many people here fail to grasp my intent, the sarcasm meter is on 10 here on my part.)
 
Certain strategies of scalping aren't a good idea to share as you'll be fighting over entry and exit ticks and will most likely result in slippage/worse fills, hence lower profit.

However certain strategies that have a greater range (I sometimes share my trading strategies in this forum) could enhance the trade with more people pushing it to that point.
 
7out said:
My wife is a high school Art teacher with a Master's degree, I'll let her know she's useless (according to your stupid logic).
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sorry, mister.
I didn't know your wife is teaching trading.
trading is more of an art rather than a science.
 
We at Quantpedia often receive this type of question as our job is to dig through academic research and look out for interesting trading ideas. And our work helps to spread those ideas. Our answer would be the following:

It is not so easy to arbitrage excess returns for market anomalies. Most of the anomalies have time-varying return so fair part of the return is preserved as arbitrage is not risk-free. Therefore there will never be enough capital to arbitrage all return away. There are a lot of research papers showing this effect.
For example, Timing Poorly: A Guide to Generating Poor Returns While Investing in Successful Strategies shows that a value anomaly preserves its return because most of the people trying to invest in "value" times it wrong. In reality, it helps to increase the return of "value" on the contrary.
Institutional mutual funds aren't much better:
http://papers.ssrn.com/sol3/pape…
Arbitrage capital is usually borrowed in some way (hedge funds/proprietary trading firms have external investors, banks are regulated in use of their leverage), there is a flight to safety effect also between arbitrageurs. Again, a lot of research confirms that for example:
http://scholar.harvard.edu/files...
http://www.sciencedirect.com/sci...
https://www.ecb.europa.eu/events...
etc. etc.

How long remain strategies profitable? Academic research shows there is a decrease in profitability after anomaly/strategy is published (which is logical). However, anomaly usually doesn't vanish completely but is just weaker and could be still used in a diversified portfolio.

http://papers.ssrn.com/sol3/pape...
http://papers.ssrn.com/sol3/pape…
It is even usually possible to compensate for decay in performance by correctly timing strategies/anomalies:
http://papers.ssrn.com/sol3/pape...
http://www.fin.ntu.edu.tw/~conference/conference2008/proceedings/proceeding/5/5-1%28A45%29.pdf
 
john7722 said:
Would sharing a profitable trading strategy really stop it working?
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Hello john7722,

Yes.

If you give me your automated strategy and I back test it and it has believable Edge.

I will bet $500,000 on your strategy and trade as many contracts as I can, so my $500,000 can go to $1,000,000 as fast as possible.

Then I will take the $1,000,000 and invest in your strategy and trade as many contracts as I can, so my $1,000,000 can go to $2,000,000 as fast as possible.

and on and on. I will repeat this process until I have $XX,XXX,XXX if I have a drawdown of about 20%, I will stop running your strategy and put the money made from your strategy in my bank and End my Trading Career.

The goal in trading is to make $X,XXX,XXX to $XX,XXX,XXX as FAST as POSSIBLE and hopefully as EASY as possible. Please never forget this.

With that being said, please PM your strategy please so I can make $1,000,000 as fast as possible please. I am begging you.

Thank you John.
 
7out said:
Certain strategies of scalping aren't a good idea to share as you'll be fighting over entry and exit ticks and will most likely result in slippage/worse fills, hence lower profit.

However certain strategies that have a greater range (I sometimes share my trading strategies in this forum) could enhance the trade with more people pushing it to that point.
More...

Here: https://www.elitetrader.com/et/threads/is-this-a-good-or-bad-trade.365653/page-5#post-5563508

I post some of my strategy picks (that anyone can follow) which have a better than 75% of success. Will update soon for a high probability trade for tomorrow's day session.
 
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