Does a trading strategy becomes obsolete?

[TheUltraElite]

What I am trying to say is that if many people know already how to use a certain indicator then I think it is not useful anymore. That is the idea of trading.

After having done years of stock market and around 6years in crypto, one thing I can say for sure, indicators and technical analysis are a pseudo-science and they can only predict what the market is undergoing at an instant. How you interpret this data is upto you. But this does not mean that a up or down movement is going to happen right now or sometime later.

If what you are inferring would have been true, then some trader would always be making huge profits but this is not the case, even veteran traders have losses and they have learnt how to cope with that.

You have to know how to use indicators in order for to have an edge in other traders.

Nope. This statement propagates the idea of "best possible indicator" which is a flawed concept, but often marketed by these "gurus". This is not a game of win or lose, it is a game of patience and knowing when and how you place the trade.

[1715334695]

1715334695

[suzanne5223]

I am trying to learn more about trading strategies specially in Technical Analysis. Upon trying different indicators, it comes to my mind that indicators might become an obsolete one day.

I don't see this happening because indicators are the fundamental tools for analysis for investors and traders but people may combine new trading technology that will be developed in the future with indicators because I hear an article that says Ai technology that will predict the cryptocurrency market price will be developed in the future and if we look into the performance and innovations in the Ai setting it's possible that this will happen in the future.

[maydna]

I agree that one day a strategy can become obsolete due to developments in the market. To anticipate this, we must continue to learn and trade. It is a learning process that does not stop unless you really stop trading.

But for now, those strategies still work and can give you an opportunity to know when you can trade or enter the market. Maybe many people know how to use each indicator but not many can really use it properly because we still see many people who experience losses. Trading is not only learning about strategies, indicators, and crypto news, but learning to trade is also about learning self-control. Maybe these people don't know how to control themselves properly even though they are experts at using all the indicators.

[crwth]

If you were to read and learn about it a lot, you would know that there are different strategies that are applicable to different market situations and you need to have those fundamentals in order to be successful in trading. I don’t think it will become obsolete, but it will be adaptable to what the market is.

Possible strategies can become different by adding different indicators to the set up. It’s ideal to be consistent and make sure that you are emotionless when trading that’s why it’s essential, in my opinion, that you use a bot like Gunbot.

[Franctoshi]

I am trying to learn more about trading strategies specially in Technical Analysis. Upon trying different indicators, it comes to my mind that indicators might become an obsolete one day.

This is why you need study the market behavior to understand what kind of trading strategy that suits a particular market , therefore when you have only one trading strategy, this is the kind of things you can experience because no strategy works 100%, sometimes they begin to lag as market changes.

Just imagine if all of us knows how to use RSI and MACD. We all know when it is overbought or oversold. Therefore, we already know as well when it is good to enter and exit in market. Since we all knew about, RSI is not a good indicator anymore and many of us will find a new indicator that will provide us more details than the latter one.

There are so many indicators out there , and not all trader use RSI as you think, Too we have different Time frames in the market and traders trade base on different time frame, and so is the RSI effected by different times and hence doesn't go overbought/oversold at same time in all time frames.

[Queentoshi]

Now, many Trading Gurus are teaching the best strategy to use. Wherein fact, strategies are becoming obsolete as time goes by. If you are new in trading world, definitely you will be eaten by those traders who know a lot in trading.

What these trading gurus should be teaching should be how to identify and know when your strategy is becoming obsolete for you to know when to change it, not teaching one strategy that will fail in the nearest future. Strategies are based on current events, and because current events are not predictable and always changing, there is a need to always change your trading strategy.  If you are losing money in trading, it is an indication that your strategy is already on the way to becoming obsolete, there is a need for you to change it.

[Blawpaw]

I guess so. I take it that if you keep using the same strategy over and over, it tends to wear out at the end af time. Especially, if you are going for the same strategy in front of the same players. That way, they will end up umderstanding your strategy and it wont pay off anymore. The same can be true for a specific casino. If you are constantly using the same strategy in the same casino, they'll end up knowing how to make it fail.

[Adbitco]

Is not obsolete and therefore you can't do without these indicators naturally these are mathematically analysis that checkmats the price movement, the volume and many more. So as a trader you definitely needs trading indicators to determine or to judge your entry and exit point while trading, most people aren't that good with this indicator.

[Crypto Library]

-snip-

I think trading strategy becoming obsolete depends on what strategy you adopted. Because if you don't take the strategy where it needs to be taken, it will obsolete later. And I think it's best to depend on yourself for strategy. I don't really know much about technical analysis but I think read different articles instead of following all those gurujis.

[boyptc]

Nah, they won't become obsolete.

No matter what happens to the market, these strategies will remain and will still be applicable mostly to the markets where it's been mostly used. That's why even in other markets, these have been tried and seen to be a good indicator.

It's just so happen that there are too many of them and you've got to choose what's proven to be good and effective. They might not work for sometime and that's why there are other strategies you can work for.

I agree, The current strategies won't die even if the market scenario have change especially if we talk about TA and FA. New strategies is born from time to time and we have the privilege's to asses the situation and choose what kind of strategy would be more effective and accurate for the given situation. We all have a bias strategy for each market scenario and I believe that most of us follow that kind of strategy every time since the accuracy rate and results satisfies us.

Accuracy rate for most strategies lies on how good the trader is.

But yeah, these are just guides and they'll be there no matter how old or new a market will be. Someone can boast how good his accuracy are if he's able to make more wins.

And that's the bias that he can show to the other traders because he's just too good with his trades. Well, it won't be always on the winning side, so strategies do upgrade too.

[kamvreto]

no trading strategy will become obsolete, unless you upgrade your own skills. Indicators are also always updated regarding functions and some necessary updates.
Trading strategies with technical analysis can be combined in such a way that many types of strategies can be generated.
But some professional traders usually use the same trading strategy to determine market conditions, and maybe only some of them upgrade. What becomes obsolete is not a trading strategy, but our ability to process indicators into a strategy that needs to be improved.

[harizen]

The market is unpredictable, therefore what indicators really indicates is obviously not 100% accurate will happened. Even if we know how to determine if it is overbought or oversold, do you think the majority will do the necessary actions to take advantage of that market scenario?

Our winning actions depend on our own approach to a given market situation.

It's useless that we know how to analyze something but in return no actions on our part.

[kamvreto]

Dont know on why they do make use of the word obsolete which is that understandable that it wont really be that relevant.Why it has come to be obsolete consider these things arent that precise thing for us to
depend on?
Its true that things turns out to be obsolete is on the time that you cant already make out some analysis out of these indicators or tools which are freely to be used by someone.
It is really just depending on how you would gonna use it towards on guessing on what are the probabilities of next possible movement.

maybe just the wrong choice of words. strategies that have been used for several years will still be suitable because these strategies are already the best to implement. just make improvements to some indicators that can produce a better strategy. Those who cannot develop and cannot make a good strategy will feel that these indicators are no longer relevant, even though they are the only ones who have not been able to develop them.

The market is unpredictable, therefore what indicators really indicates is obviously not 100% accurate will happened. Even if we know how to determine if it is overbought or oversold, do you think the majority will do the necessary actions to take advantage of that market scenario?

The majority of actions will never be the same, because trading using technical analysis is very complex, it will also be influenced by one's mentality in making decisions on trades. There's no point in knowing overbought or oversold if you can't take appropriate action.

[Kelvinid]

I am trying to learn more about trading strategies specially in Technical Analysis. Upon trying different indicators, it comes to my mind that indicators might become an obsolete one day.

...

I would say NO. Technical Analysis is still very important in trading, in fact, it is one of the most useful tools to use in trading. It can only be obsolete if everyone is not using it due to it being ineffective but as I see many traders are still using this (even me). Might see some upgrades on the trading strategies and new tools or TA can be upgraded into a more realistic one. But what really matters is how a trader uses TA or if they are really knowledgeable enough to use it. Otherwise, no matter how many trading tools and strategies are used, it is never profitable anymore if you can't do it in the right way.

[Woodie]

It's really difficult to answer this question because it's a Yes and no answer as most of the strategies out there  do work well if you have a grasp and understanding of what parameters need to be seen before executing a trade. And In terms of being Obsolete, well once upon a time we had people trading with moving averages only and traders weren't as profitable as they thought they would and most moved on to support and resistance and same thing helped and have moved on to supply and demand which could suggest that some strategies do become Obsolete.

[inthelongrun]

But big news like the bankruptcy of FTX is probably the best and most reliable indicator.

Funny you here. What do you really mean ? So which direction are you expecting the price to go from your analysis of the FTX exchange scam? Yes investors expected that price will drop but yet we are not seeing that happen so far. So what is your analytical expectations of FTX scam from what you see and your prediction from it buddy? 

Yes, it is funny because it seems someone was not able to comprehend my message. Big news isn't a technical trading indicator but it can drive the market crazy and will always destroy TAs.

Are you even following the market mate? Have you not seen the market reaction when discrepancies were found on FTX and Alameda? And when CZ declined the buyout? Even the current market situation is still under a kind of domino effect with exchanges in the hot seats including Binance the largest crypto exchange.

[xSkylarx]

It doesn't mean that if it is already overbought or oversold, it would be going to other way. There are still instances that RSI and MACD are saying it, but still, it will continue to its direct. Indicators are only guiding us to predict its movements. Indicators will stay forever as long as trading exists because most professional traders use them, it is used like signals for them or confirmation of their strategy. Also, it is very useful to us traders unless you are a naked trader that wants a clean chart.

[Jody.Drummer]

The market is unpredictable, therefore what indicators really indicates is obviously not 100% accurate will happened. Even if we know how to determine if it is overbought or oversold, do you think the majority will do the necessary actions to take advantage of that market scenario?

Our winning actions depend on our own approach to a given market situation.

It's useless that we know how to analyze something but in return no actions on our part.

Yes, that's right, the role of the indicator only helps to see the next price movement, and does not mean that it can be completely true because there are still factors outside of this (indicators) that must also be considered. Indicators make it easier for us to see what will happen in the future and with that we can determine what steps we should take after using the indicators we use.
Technical analysis is one that can be used to analyze market movements. This is one important part that should not be forgotten in my opinion.

[AakZaki]

it's easy to say that indicators will be obsolete everyone will know how to use indicators, but in reality it will not be that easy. it's not just a matter of technical analysis indicators that play an important role in trading is psychology, everything will be influenced by psychology. No matter how good their technical analysis is, if psychology is not stable and easily panicked, the strategy will fail. Remember that technical analysis is not just about the RSI and MACD, but there is much that can be combined.

[karabiber]

Indicators used when investing in the stock market are used to analyze the historical data of the markets and to predict future price movements. These can be used for different purposes such as spotting trends, measuring momentum and measuring volatility. These indicators can help traders better understand market conditions, but each has its own advantages and disadvantages. Therefore, when deciding which indicator to use, it is important for traders to choose the one that suits their goals and strategies. For this reason, I don't think it will be an outdated indicator. It just has to be fit for purpose.