What would be the outcome if this happened?
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Thread: What would be the outcome if this happened?

  1. #1
    What when a trading system has been designed that was so accurate that tens of thousands of traders began using it?

    Can it be effectiveness increase or decrease?


  2. #2
    When everyone buys at precisely the same moment, what happens? Rates are pressured higher. When everyone wants to sell at precisely the same moment what happens? Rates are pressured lower. Isn't this what is called Momentum Trading?

  3. #3
    I would think that could be a good thing if everybody traded the exact same system because the market can move. But timing and synchronization are a issue and we would wind up stepping on each others feet.

  4. #4
    The answer is punctually. By way of example if your system is used by everybody and it reveals EUR/USD brief position YOu should sell after pips or first proceed.

    IT could be good if my huge figure plan was widely used I usually set limit orders near large figures in GBP/USD and if bulk used my egy I'd have fitter pips than I usually have.

  5. #5
    Quote Originally Posted by ;
    I might think that could be a good thing if everyone traded the exact same system because we could move the market. But synchronization and timing would be a issue and we would probably end up stepping on each others toes.
    Eh, IF it might be possible ...
    Even olygopolists can't manage. Can you know prizoner's dilema in Microeconomics? It's like that, somebody will let us down and will not follow our method.
    IT sounds like Soros and Buffet join each other to move the Marketplace

  6. #6
    Barbara Rockefeller talks Technical Analysis for Dummies. Essentially what it boils down to is when a lot of traders are using conventional signals and graphs, that it becomes kind of self-fufilling prophecy, because when a lot of people's graphs are telling them it's a purchase market, an increasing number of people buying will propel up the price. I still think it holds any truth in the money market too though this might be true stocks , for say.

    Just my two cents.

  7. #7
    Actually no 777, in case a huge Figure technique was widely used and known as profitable, people would place their stop losses aning the edge onto it.

    In my opinion, if one particular trading system was universally perceived as profitable and thus homogeneously employed by the masses, it would be self-destructing because everybody would see the identical sign, at the same time, on the same price and at the same direction, and consequently liquidity to come across opposite positions to fill on your offer/bid would vanish.

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