System Diluting

Ive been to different Foreign Exchange seminars (once I was a noob) at which the teacher would teach a number of his trading techniques and methods. Then they'd insist on registering non-disclosure agreements since the more people use this techinque (ie simple MA cross, or doji candle. Crap everyone can find out on there own) will dilute the signal

The instructor will claim that the more people who followed a specific technique the less it would work. Was this a method of tricking the noobie attendees in thinking that this was something great and must be maintained a secret or would be that the instructors statement valid?

I thought that if you were buying, and others bought also, it would add rather than remove from direction.

Never buy a method....its a waste of money.

I'd pay more for risk management course, then a system. Risk Management is the trick to the sport. Finding low risk, high reward scenarios is the key.Don't feel you have to be in the market at all times. Just when it is opportune.

It was also because they did not want their material to be free to other people, but most important was because the longer people exchange the same system the less powerful it becomes. That is a known fact as a lot of systems became absolete since the people using them could not create profits and keep their mouths closed. Think about it: what happenes if more and more people use the same egy and input a buy or sell in the very same times? If you market apples alone, you create a lot of profits. If hundreds start selling along side you, less profits as the demand weakens. Apples, inventory, currency pairs, trading is trading. The most succesfull traders wont be posting in forums, they're too busy making money and they know to close their mouths about how they did it.

Come on now. Retail traders dont really move the market that far. If a couple hundred traders exchange the identical system it wont affect the market that much either..unless they have thousands and thousands of dollars and also trade in the same time.

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Originally Posted by ;

Come on now. Retail traders dont actually move the market that far. If a few hundred traders exchange the same system it wont impact the market that much either..unless they each have thousands and thousands of dollars and trade at precisely the exact same moment.

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Yes they do. The traders move the market that the broker reveal. They don't go the interbank market, the big boys do that, but the market you and I and retail traders have access to will be moved by the brokers and by little retail traders. Or did you think that we actually get on the interbank market such as the broker market?

Stop hunting .

So many traders place their stops at exactly the same points (Just out of recent support or resistance), that it is profitable for all those with the info on order numbers to take advantage of them.

The same could be said of a system/method becoming extremely common.
Someone would find a way to take advantage of all of these sheep following each other.

,Bundy

Https://forexintuitive.com/attachments/1527446202.png But think about this:

a sizable group of individuals trading the same system with a market maker all go long at precisely the exact same moment. In order to hedge the exposure created by this buying, the market maker takes a brief of equal size at the interbank market. This then causes prices to fall from the interbank market and this autumn is quoted by their platform.

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Originally Posted by ;

The teacher would claim that the more people who followed a certain technique the less it'd work. Was this a method of fooling the noobie attendees in believing that this was something good and must be kept a secret or is the teachers statement valid?

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I believe that main intention of non-disclosure arrangement is to allow teachers to sell their systems into as many people as they can do. If information is publicly available than who will pay for it?

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Originally Posted by ;

I thought that if you're buying, and many others purchased too, it could add instead of remove from direction.

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It is dependent upon two factors - 1) the concrete egy principles and 2) the volatility of market the egy is going to be applied at.

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Originally Posted by ;

https://forexintuitive.com/attachments/1527446202.png But think about this:

a sizable group of individuals trading the same system using a market maker all go at precisely the exact same time. In order to hedge the exposure generated via this buying, the market maker takes a brief of equal size at the interbank market. This subsequently causes prices to drop in the interbank market and this autumn is quoted by their platform.

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In case a Mkt Mkr hedges a large group of individuals trading the same system all moving long by taking a brief of equivalent size at the interbank market - He will be a Mkt Mkr for long.

He's already Short with his Clientele. Shorting the Interbank would double his exposure.

To Hedge, he would be a Buyer @ Interbank. Offsetting his Position.

Just a point of information. Not a comment on Dilution.