If alpha decay doesn’t really exist for retail traders then the failure rate would be lower than 95% , scamming within the retail space wouldn’t be a problem, because with my understanding it’s not that these strategies don’t work but it’s the fact that when a lot of people try and take an advantage of a certain pattern (financial inefficiency) then it ceases to exist . To add on that trading is a zero sum game whether A book or B book so it only makes sense for a strategy to decay when a large amount of players try to take advantage of that inefficiency.
Imagine Coca Cola sharing its recipe , it would lose marketability 🤷🏽♂️
2026-07-25 06:43:25
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