Also Goomboo, the question which is probably on the tip of a few tongues right now. Pure skepticism -- I'd like to ignore it, but curiosity has the better of me. Although you instructed people not to use your 10/21 forumla, its almost impossible to expect anyone would not use it (Diffusion of responsibilty). If someone (such as youself) had a hunch that a bunch of people would be working explcitly with the 10/21 system, is there a way that you could use a counter-measure to make extra profits from this manipulation of the trend?
(this question is asked with much respect by the way).
(this question is asked with much respect by the way).
That's what I meant when I said this isn't going to work for long.
So if you will short when there is a crossover (and many ppl do this). This creates a extra downward momentum so the way to make a profit from this is to also sort yourself. So in a way if many ppl use it. Don't really see how you could make extra profit of this. If the market goes up again there is a new crossover so you if you this system, you will sell your shorts and go long.
(I'm not an expert just a enthusiastic noob.
)Right, until enough people do this, then when there's a crossover I watch everybody short, I put a few thousand in bitcoinica on 10:1 margin and squeeze everyone out.
You could do that - several times if you want. For a trader who is managing his risk, he will survive and continue to trade. Eventually a trend will continue, down or up, it doesn't matter. Larger money will break your squeeze and trend followers will be following the trade. This happens every day on the market - the struggle for trend continuation / reversal. Rather than choosing a side, I prefer just to stick with something simple and focus on survival.
I want to remind everyone at again that more than likely you will lose when you trade. Check some of my previous posts - this system at BEST wins 40% of the time and loses 60% of the time. Proudhon is right that a reversal may happen because people will be aware. However, with trend following, your winning trades are typically much larger than your losing trades.