Will alpha decay eventually fuck you in daytrading?

[Meibos]

Been learning how to trade for about a year off Pb trading concepts, heard about alpha decay and lowk stopped cus im scared my system would stop working eventually even if i did become profitable. Does Anyone know if theres a way to get around this?

 

[StellaFanboy]

 

[L(oser)ooksmaxxer]

Stop day trading bro might as well sports bet and at least have fun with it make some good investments

 

[Meibos]

Stop day trading bro might as well sports bet and at least have fun with it make some good investments

r u just saying it doesnt work in general?

 

[Meibos]

"Alpha decay" wtf are you talking about. There's no such thing.

Perhaps you meant to say, reversion to the mean. That's only applicable to temporary over performance, not alpha.

You sound like you are profitable

 

[armemann]

You sound like you are profitable

No he doesnt

He doesnt even know alpha decay

 

[armemann]

"Alpha decay" wtf are you talking about. There's no such thing.

Perhaps you meant to say, reversion to the mean. That's only applicable to temporary over performance, not alpha.

Please stop giving advice

 

[Meibos]

Please stop giving advice

why is he wrong

 

[armemann]

Been learning how to trade for about a year off Pb trading concepts, heard about alpha decay and lowk stopped cus im scared my system would stop working eventually even if i did become profitable. Does Anyone know if theres a way to get around this?

If the strat becomes fame enough and IS ACTUALLY PROFITABLE FOR INSTITUTIONS it will get picked up, used and it will decay soon

But PBs IFVG strat, will NOT get picked up by institutions (REAL BIG MONEY) because it probably isnt profitable and safe enough for them (also probably not 100% codable bc they lack pattys intuition) and all the little daytraders on their prop accounts dont matter in the market

 

[armemann]

why is he wrong

Its not even about wrong

He DOESNT EVEN KNOW what we are talking about (like you)

he doesnt even have a sense of the topic

 

[Meibos]

so if the strat is niche enough alpha decay wont apply

 

[Pale God]

Been learning how to trade for about a year off Pb trading concepts, heard about alpha decay and lowk stopped cus im scared my system would stop working eventually even if i did become profitable. Does Anyone know if theres a way to get around this?

 

[Sean o' Tist]

Because when someone finds edge based on pattern in the market sooner or later it will get picked up by other people/insitutions as wel.
Just dont even trade atp if you dont understand this yet.

 

[Meibos]

98% of traders are unprofitable. Technical trading can be done I've know a few traders that do it for sure but its very few. Most who claim to be able to technically trade profitably are simply riding near/intermedia term trends and misascribing that to their own ability. They tend to washout within a year or whenever the trend changes.

While i've generated a lot of alpha, I've never been able to do it from technicals. I'm fairly decent at picking stocks/options and having a general seens of market shifts. In fact one of the only technical trade I can really do well, is interim counter trend shifts. It's more important to figure out what works for you, then try and copy someone else system.

I will say thou, the better technical traders do read A LOT of technical trading books.

Who do you suggest i learn from? There's so much bs i've already fallen for so i dont know what to believe anymore.

 

[kisslessvirgin]

you have no alpha

 

[Meibos]

you have no alpha

thats y i said eventually