Why does any strategy only work successfully for a limited time and then stop working?
Is it like this for everyone?
Same reason why the price goes up first and then stops going up. :)
The market is a fickle phenomenon. All because systems are not comprehensive, and not adaptive on a wide range of parameters, therefore when changing some internal phenomena, "sooner or later" there are those that push the system to the drain.
P.S. The fact of philosophical mood, hovering on a forum well it is impossible to deny...
Почему любая стратегия успешно работает только ограниченное время, а потом работать перестаёт?
Not any. Limited time only 'limited' strategies work.....
I agree with sayfuji about market volatility...
In my experience, strategy development involving adjustment to any parameter/merchandise, from the intersection of two wagons to neuro-packages, leads sooner or later to the same result (see Olenenok's post).
All the main movements on the currency market happen for one big reason - the flow of money supply (of course in USD) from one sector of economy to another - from the currency market to the stock market and back. With the growth of the stock market the dollar weakens (money supply decreases on the currency market and increases on the stock market) and the euro and others grow as a consequence. When the stock market falls, the opposite happens - the quid rises and the major majors fall. I personally determine this trading direction by the direction of the major stock indices (DJ30, S&P, Nik225) as well as gold and oil. While there is a major currency the quid and the US stock market - all other currencies move only with the "permission" of the quid.
Maybe someone will find it useful....
Good luck to all!
Why does any strategy only work successfully for a limited time and then it stops working?
The answer was already here 'How do you predict whether the day will be volatile or normal?
The market is volatile, who disputes that. But there are constant entities in it, invariant, if clever.
I.e. if the TS relies on the specifics of time and environment (instrument), then it is an indexist and will die outside its ecological niche.
In all seriousness, what do all liquid markets at all times have in common (apart from unpredictability!))?
OK. The first thing that comes to mind is probably the wave nature. From the same theme, the presence of trends. All this is a consequence of inertia. A system with a delay line in the feedback.
If we design a TS without relying on the specificity, it will be "eternal", but it will hardly be more profitable than a "purely specific" TS customized for an instrument. If it is profitable at all.))
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