Are the ‘easy pickings’ gone?

Just wanted to share a quick thought to finish up the week, it’s a blog post called ‘The easy pickings’ on the irrelevant investor website.

The author, Michael Batnick, makes the point that “what once was easy turned into something quite difficult” and you can definitely see that in some aspects of the markets.

Edges get eroded away over time, and I think it’s extremely important to keep trying to find new ones.

If you look at certain styles of trading strategies, like breakout trading, it seems to be much more difficult these days than it used to be, especially with more noise in the markets, which can lead to an increase in the number of false breakouts.

To account for that, we need fresh ideas and new approaches to building breakout strategies, which you can find in ‘The 14 day breakout strategy challenge’ here.

If you already have breakout strategies, there are effective techniques you can use to reduce false breakouts without curve fitting, and we share 12 different approaches in the ‘Smashing False Breakouts’ program. You can find out more about that here.

Have a great weekend!

Cheers,
Andrew.

Released:

27 April 2018