Okay, can you explain? How can a trend be arbitraged out? A trend is a price movement in one direction (with noise, of course). If it's moving up or down consistently throughout a period of time (perhaps above a certain % threshold of movement), which obviously happens all the time, how can anyone claim that it's arbitraged out? I mean, it happened right? If you BLSH, then profit.
TurtleTrader
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Okay, can you explain? How can a trend be arbitraged out? A trend is a price movement in one direction (with noise, of course). If it's moving up or down consistently throughout a period of time (perhaps above a certain % threshold of movement), which obviously happens all the time, how can anyone claim that it's arbitraged out? I mean, it happened right? If you BLSH, then profit.
Trend is formed by supply and demand. If an indicator for trend is well know I can front run the indicator buying and selling and your indicator would be late to the game. Remember the January effect?
Am I making any sense? I am not a pro, just an amateur retail.
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I can explain it; trends do NOT really get arbed out. BUT if you have all or most all jumping on a 50 day moving average@ same time-it can get crowded, slop chop/pig slop. BUT give a good trend some time, especially if they pay you dividends to wait.
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