Parrondo's paradox - a paradox in game theory, has been described as: A combination of losing strategies becomes a winning strategy
Lets think of a list of polar opposites present in forex, for example :
Positive l Negative
Bulls l Bears
Trend l Consolidation
Buy l Sell
T.P. l S.P.
Than using logic similar to - If trend systems fail in consolidation, and consolidation systems fail in trend. Than using such weakness, we could get strength by understanding where a consolidation phase takes place and ends, and where a trend phase takes place. When people are tricked in to trading the consolidation, we will trade the trend against them. Since their consolidation oriented systems will fail in trend. When trend trading takes place, we will trade against trend followers in consolidation since their systems fail in consolidation.
In order for one to win, another must loose in a zero sum game.
When we opened a long and the price went up, its good for us, but its bad for someone who went short. And the opposite applies.
So basically... a losing factor can be exploited in to a winning factor.
To my believe, the key lies in what scares people from forex.
Volatility for example, I heard that some stock traders don`t like forex due to volatility... perhaps we should exploit volatility?
FX is a 24 hour market, perhaps we should exploit the time?
Oh and please do bash me with constructive criticism if you disagree with something that I said. Also please do provide ideas or opinions no matter how silly you believe they might sound to others.
After all when Newton discovered the gravity and he told people - "WOW guys look, the apples fall to the ground. There is something pulling them to the ground!"
Most replied with - Yeah idiot, so what? We knew it since birth.
Not many however yet realise what a genius Newton was.
Lets think of a list of polar opposites present in forex, for example :
Positive l Negative
Bulls l Bears
Trend l Consolidation
Buy l Sell
T.P. l S.P.
Than using logic similar to - If trend systems fail in consolidation, and consolidation systems fail in trend. Than using such weakness, we could get strength by understanding where a consolidation phase takes place and ends, and where a trend phase takes place. When people are tricked in to trading the consolidation, we will trade the trend against them. Since their consolidation oriented systems will fail in trend. When trend trading takes place, we will trade against trend followers in consolidation since their systems fail in consolidation.
In order for one to win, another must loose in a zero sum game.
When we opened a long and the price went up, its good for us, but its bad for someone who went short. And the opposite applies.
So basically... a losing factor can be exploited in to a winning factor.
To my believe, the key lies in what scares people from forex.
Volatility for example, I heard that some stock traders don`t like forex due to volatility... perhaps we should exploit volatility?
FX is a 24 hour market, perhaps we should exploit the time?
Oh and please do bash me with constructive criticism if you disagree with something that I said. Also please do provide ideas or opinions no matter how silly you believe they might sound to others.
After all when Newton discovered the gravity and he told people - "WOW guys look, the apples fall to the ground. There is something pulling them to the ground!"
Most replied with - Yeah idiot, so what? We knew it since birth.
Not many however yet realise what a genius Newton was.
The truth is hidden from you