How does a edge disappear?

O

OneQuickNut

Hypothetically speaking if you have an intraday edge in large caps stock and futures, that trades market orders only. How can it disappear. Is it frontrunning?
Thinning out stocks or contracts at prices you buy and sell at?
Price starts to change its behaviour?
Who and what is killing your edge?
How did Dan Zangers and Larry Williams and all the other "recent" traders lose their edge?
How can you prevent this from happening?
Thanks in advance
 
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OneQuickNut said:
Hypothetically speaking if you have an intraday edge in large caps stock and futures, that trades market orders only. How can it disappear. Is it frontrunning?
Thinning out stocks or contracts at prices you buy and sell at?
Price starts to change its behaviour?
Who and what is killing your edge?
How did Dan Zangers and Larry Williams and all the other "recent" traders lose their edge?
How can you prevent this from happening?
Thanks in advance
More...
The only true edge in trading is Prudent Money Management. That never disappears.
 
Not all edge are edge and not all edge disappear.
But when a change happens ... the game end for some and start for others.
Regulations, technologies, market structures and participants can change the game.
 
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Sekiyo said:
Not all edge are edge and not all edge disappear.
But when a change happens ... the game end for some and start for others.
Regulations, technologies and other stuff can change the game.
More...

If something is consistently profitable, i would say its an edge.

Who is changing the game? On top of my head i am thinking HFT market making hedgefunds, since short term is a zero zum game and they are providing the bid and ask for market orders. But honestly i don't know.

What technologies? Do you mean strategy wise or something like a new way of frontrunning, please elaborate.
 
The rest of the market adapts and takes it.


Did you catch title fight between Israel Adesanya and DDP? A few years ago the Stylebender seemed unstoppable. His style got figured out. The competition adapted.

Also Psychology and a change in risk profile.....Ever watch a MMA fight or a football game when the frontrunner no longer played to win but instead just played not to lose?


After a certain level you no longer need to focus or have the motivation to build more edge.
 
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Every day has a daily range with a day low and a day high somewhere between Open and Close.

I don’t see that changing anytime soon, so my advice is to exploit that. Buy the low. Sell the high. Or vice versa when it’s the other way around.
 
Sergio123 said:
The rest of the market adapts and takes it.


Did you catch title fight between Israel Adesanya and DDP? A few years ago the Stylebender seemed unstoppable. His style got figured out. The competition adapted.

Also Psychology and a change in risk profile.....Ever watch a MMA fight or a football game when the frontrunner no longer played to win but instead just played not to lose?


After a certain level you no longer need to focus or have the motivation to build more edge.
More...

I did not understand your last paragraph, can you elaborate a little more. Do you mean the counterparty stop caring or the retail trader gives up?

How are the counterparty adapting and not losing money or breaking even. How come they have an unlimited edge, what are they doing differently, are they constantly inventing?
 
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