popular strategies effectiveness.

[Caprica]

I think if you are a hedge fund or a bank being descrete about your strategies is probably the norm. One major reason for doing this is there are other players out there with billions of dollars playing against you. The other reason is the same reason why most governments keep secrets: to save themselves embassasment.

I suspect small players are more likely to fall into the second category ....

[initialsBB]

Originally Posted by Caprica

I think if you are a hedge fund or a bank being descrete about your strategies is probably the norm. One major reason for doing this is there are other players out there with billions of dollars playing against you. The other reason is the same reason why most governments keep secrets: to save themselves embassasment.

I suspect small players are more likely to fall into the second category ....

You got this all wrong. Banks do divulge their strategies. It's really ironic totally wrong to think that someone is playing against you or anyone else. The essence of any market is that there are always divergent views about what will happen.

[mrbrint]

heres the reality the banks are what move the markets so what do they care if anyone knows of their strategy they have piles of capital hedges to midigate risk they are in a far better position than any of us in retail

[birdjaguar]

Originally Posted by ampris2000

hi
i don't underst how a strategy could lose its effectiveness by more people using the same strategy.
please explain.
thanks.
p.s. so it would be best to not share my strategy with anyone correct?

Even if you gave your strategy in great detail most people would not be able to trade it successfully. Unless you have a track record like the turtles no one would even attempt to trade your strategy. One of the reasons a strategy loses its effectiveness if everyone is trading it is because people will begin to anticipate the signals. This is not only emotional but also logical. Aggressive players will attempt to beat others to the punch. Then yet another wave of people will try to anticipate the original anticipaters. Soon the system has fallen apart. Just one view. Happy trading.

[martym]

the market is way big for this to have a effect

[mrbrint]

The reason why technical analysis works is because its widely used. Any mistakes Ive made ( ive made plenty) have had more to do with not looking at the larger trend or applying indicators inappropriatly. Secondly no strategy will work every time that is not reality the market will do whatever it wants.

[birdjaguar]

Originally Posted by martym

the market is way big for this to have a effect

Agreed. I was just writing theoretically about the psychology of crowd behavior.

[Caprica]

Originally Posted by initialsBB

You got this all wrong. Banks do divulge their strategies. It's really ironic totally wrong to think that someone is playing against you or anyone else. The essence of any market is that there are always divergent views about what will happen.

Do you have any examples of banks disclosing strategies that they are currently trading?