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Jan 5, 2021 at 21:21 history edited Barmar CC BY-SA 4.0
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Apr 20, 2020 at 1:35 comment added toolforger @Barmar this is different from a perpetuum mobile: after all, successful traders do have an automated trading strategy. What's missing is the explanation how the 2% strategy is worse than other, existing strategies, so this is about the relative merits of strategies, not about trying to invent a perpetuum mobile.
Apr 18, 2020 at 15:13 comment added Barmar @toolforger If someone proposes a perpetual motion machine, I wouldn't need to feel the need to explain why that particular machine doesn't work. I've added another paragraph explaining why any basic strategy like this is bound to fail.
Apr 18, 2020 at 15:10 history edited Barmar CC BY-SA 4.0
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Apr 18, 2020 at 5:42 comment added toolforger This answer is correct but answers with an explanation about the actual problems with the strategy are better.
Apr 17, 2020 at 16:33 comment added Brian Subscribers to the EMH often model the stock market as a random walk (with a slight bias upwards). With this model, investment strategies based on historical pricing data are trivially rejected, since by definition a random walk sets prices completely independent of pricing data.
Apr 16, 2020 at 17:43 comment added information_interchange For more info along this line of thinking, see the Efficient markets hypothesis: en.wikipedia.org/wiki/Efficient-market_hypothesis
Apr 16, 2020 at 14:46 history answered Barmar CC BY-SA 4.0