Active trading strategies are highly conserved. In other words, people from all walks of life getting into active trading tend to develop strategies that do the same trend-following and counter-trend-following things. Inhouse âFadebotsâ pick up on this and fade against and shake out trend-followers who are actively trading during uneventful times. The fadebots have access to who is trading when, what, and how much. Nothing new here, but more computerized and automated. Donât believe a liquid market will not move 1% to shake just you out. They know who is trading and you donât. However, trend following success comes from efficient markets getting forced into inefficiency by âevents.â And when they happen, the fadebots act as market makers responding to size. All they can do is react and provide liquid and orderly markets in a time of crisis and semi-crisis. Otherwise, they will just take your money. Counter-trend people cut into the fadebotâs action and make money when most traders are waiting for the next âeventâ to happen. And when the event happens, the counter-trend people get wiped out while the fadebotâs are protected by their size and access. Thatâs why the surviving traders are trend-followers.