Why protect your algorithm
Created at 03 Jul 2017, 20:28
PI
Why protect your algorithm
03 Jul 2017, 20:28
Why should one protect his/her forex trading algorithm?
What does it matter if other people execute the same trades as you? Isn't the forex market so big that it has a neglectible effect on the market if some other people (or even thousands of other people) execute the same trades?
Furthermore, isn't it true that an algorithm might even become more profitbale, due to self fulfilling? E.g. just because of the fact that a lot of people see Fibonacci levels as support/resistance levels they become self fulfilling and so they actually become support/resistance levels.
Thanks in advance.
Uche
04 Jul 2017, 18:44
RE:
pipsniper123 said:
It matters a lot,money is lost by someone or an entity when you close a deal with a profit and that makes it difficult to crowd trade a strategy and a reason why you must limit the use of your strategy if it works.Also,long term strategies on liquid currency pairs can be traded by lots of people so far they don't move the markets against themselves significantly with a huge volume.Example,try placing an instant order of 100million EurUsd on a live account and see what happens,the market will never move in your favour instantly.
@Uche