I haven't posted for a while in this forum, but have been wanting to share my main takeaway from my 23-plus years of trading experience, and wanted to see what other members thought. While traders are bombarded with technical and fundamental analysis, I have found from my own trading results, and from the results of the other successful traders I have been surrounded by, that it's not fanciful candlestick patterns that bring big and consistent profits, the strategies that offer the most edge are what I call "glitch strategies". I will use the word “glitch” to describe a malfunction, mispricing, arbitrage, or inefficiency within a market. A good example in the equity markets are opening and closing auction strategies. Another example might be inter-exchange arbitrage. These kinds of strategies, though hard to find, do exist in all markets, and when discovered and utilized can bring almost unlimited profits. My goal isn't to list a bunch of strategies, but rather share this approach to trading, and see if other members of the forum share my same outlook, or might suggest markets that may be "ripe with glitches"
That's very interesting stewbacca. My edge is the plain-ole adding contracts when market moves in my favor. Sometimes it's just intensive and conscientious practice based upon mentorship, study, research, and analysis until a trader/investor finds what works.
Nothing succeeds like success. Post an example or two of successful trades of this type from the past to get the ball rolling.
Totally agreed but these edges can get eroded very fast and there were a lot of these in cryptos but now you have to deal with crypto exchange risk which have become undefined.
for liquid markets; glitches = inefficiencies = imbalances = gaps = everywhere when one has eyes to see They occur when slicing by price, time and/or volume I imagine the options market would be ripe with them, idk, not really versed in options yet.
You make a valid point. Depends also what an edge is based upon. If you know 90% of traders refuse to follow a certain tactic for optimizing profit, then it's highly unlikely to lose that edge. Also, imagine if one's edge is based upon the cyclic nature of markets. If the market never ends, neither will the Cycles that define it. Of course their phases may change, but the same formulas/ratios are used to define the cycle. The market is a multi-dimensional geometric solid (CYCLES within a square) rotating on our chart screen. Basically the same principles of physics governing the structure of the atom and forces of energy in cyclic action, also define the CYCLIC structure of the markets. Natural Law never changes, only we do.