That's when your reversal needs reversing because the market has just reversed as you decided to reverse it. And notagain says 'not again! '.
Here is one well-known counterexample. https://www.investopedia.com/articl...anyone could be,to finally settle this debate. But often, perhaps most of the time, teaching that art will end up like
Absolutely not and never will. Imagine attending a seminar and a multi-millionaire trader shares his strategy. Why would he share his strategy. Simply because he's already rich. After 6 months all attendees return to discuss results. After discussion it's determined that less that 10% actually tried to use the strategy. #1 issue that keeps the majority from success is EGO, and not a successful system.
Depends on the number of market players that learned about and use this strategy and also market liquidity. A strategy stops working when the insight that it provides about an asset that is undervalued or overvalued is incorporated in price so quickly that the only way to compete becomes speed advantage.
It is not piker newbs you have to worry about. It is professional disciplined and well capitalised hedge funds. That being said they probably wont be interested in a retail traders edge. Although it might be really good edge. It is probably not scalable enough. And if the edge is scalable it probably isn't that great (low sharpey ratio). Also the kind of systems that you learn at seminars are discretionary, cant be easily replicated anyway.
If you're exploiting an inefficiency in the market you obviously don't want others to mess with what you're doing as the inefficiency will disappear. Think for example arbitrage. Liquidity isn't un-limited at any given time/location in the market. If you let others in on what you're doing (assuming it's something worth doing) - you may no longer be able to execute your own strategy. Simply, really.
Why is the OP even asking this question? If you have a proven profitable strategy, why would you tell anyone else? Bragging rights? Gee, look how smart I am. I have discovered a strategy that no one else has seen.