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Since retail investors rely on their own analysis to lose 90% of their money, if I make the opposite order every time after the analysis is completed and the order is confirmed, will it be profitable in the long run?
If the system of positive return expectations is based on reverse indicators, then first of all , in terms of principle advantages, there is a big fatal flaw: this kind of stupid system that you seem to be a reverse indicator, you don’t know what At that time, you will make a lot of money, or even make a lot of money for a period of time. Then the system that works against it will obviously lose its position during this period.
Secondly , in terms of strategic advantages, there are also fatal flaws. A truly excellent strategy lies in a deep understanding of the market's market data structure and trading rules, and based on this rule, it can last for a long time and the system's robustness can be high. Then, a system based on a reverse indicator is based on statistics, not on the structural laws of the market itself. Systems based on statistics will face the risk of being ravaged by black swans.
Again , in terms of operational advantages, there are also great flaws. This is a completely passive strategy. Put your own profits in the hope that others will continue to lose money. Then if it is a wave of stupid market, a bubble bull market where everyone makes money, and it goes against the retail investors, then how much money will be enough to pay.
Finally , in terms of risk control advantages, this kind of system is also a relatively bad system. If a retail investor suddenly happens to keep making money in a cycle, do you follow or not, do you stop the loss or stop the loss? If other risk control factors are added, it will become a profit-making system purely based on risk control. In fact, for pure risk control strategies, you can go long on sunny days and short on cloudy days. There is no need to keep staring at the signals sent by retail investors.
Those who can understand the advantages of principle, strategy, operation, and risk control, and those who hold a knife in every floor, are qualified to eat this bowl of rice. In order to outperform the investor structure.
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Last updated: 08/28/2023 14:09