Quote from: proudhon on January 21, 2012, 01:58:52 PM

Quote from: Timbo925 on January 21, 2012, 01:00:42 PM

Quote from: proudhon on January 21, 2012, 12:36:28 PM

Quote from: Bebop on January 21, 2012, 10:57:52 AM

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).

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. Grin

)

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.