Does a trading strategy becomes obsolete?

[Woodrose]

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.

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.

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.

[jackg]

I don't think they become obselete I see a lot of them cycle from being easy to implement and highly profitible to being harder to implement and bad for making profits.

One trading strategy can work in every market environments for predictions, the issue is trying to make a profit from it and what becomes more infeasible and impractical.

If you're trading a market with a lot of day traders, you need to second guess them quite a bit too - or stay out and watch the market - because if you're all trading the same strategy, you're all losing. If you're day trading in markets with lots of investors or regular traders (bull markets and forex) you don't have to do this as much as the volume of most of the day traders and speculators is insignificant compared to those that just need to quickly move things around.

[gabbie2010]

Indicators are like tools use to aid trading, experience traders don't only rely solely on indicator in any trading strategy to determine when to buy or sell, for example RSI or MACD in oversold or overbought region does not indicate must buy or sell but serves as a clue because the price might experience a minor pullback or retracement at those region or a total reversal in another scenario the price might continue with the main trend, however skill in Price Action and how to utilize candlestick patterns with indicators which is basically Technical Analysis help traders to have an edge over the market couple with Fundamental analysis thus a trading strategy with indicator might not be obsolete though might require some minor tweaking.

[bittraffic]

The bull run cycle made it easy but real trading in a shorter time frame is where you might not find indicators to be trusted with its behavior.

We are all trading on different time frames. The RSI on the hourly chart may pose overbought but the daily chart is not.
But this is why there is leverage for traders to keep speculating even in the minute's chart because that's where they wanna be for real action and making money at every price movement.

[BitMaxz]

Here in crypto trading the strategy TA or FA is not yet obsolete even for the year those indicators you mention will still use by traders. Look at those who trade from forex and now switch to crypto trading they are still using it for signals.

Those strategies both TA and FA including the indicators you mention above are just for analyzing and predicting what will be the next move of the coin and traders usually use them for decision-making if when to buy or sell.
There are no 100% strategies that can predict the price of the coin everything in crypto is unpredictable and like I said those strategies are just for decision-making.

[sana54210]

Here in crypto trading the strategy TA or FA is not yet obsolete even for the year those indicators you mention will still use by traders. Look at those who trade from forex and now switch to crypto trading they are still using it for signals.

Those strategies both TA and FA including the indicators you mention above are just for analyzing and predicting what will be the next move of the coin and traders usually use them for decision-making if when to buy or sell.
There are no 100% strategies that can predict the price of the coin everything in crypto is unpredictable and like I said those strategies are just for decision-making.

It will never be "gone", it's not that easy to send all of these away, if you want to make sure that something works, you can just test it and I agree that plenty of people are still using it. It's not going to be vital for too long if you ask me, in the near future we are going to realize that short term trading is not the purpose of it, and either using it or holding for long years is the real usecase for bitcoin but until that is realized we will have a lot of people who will keep using it.

It's unfortunately not always right as well which means that you will make some calculations and you will end up with some problems for the long term as well.

[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.

[abel1337]

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.

[Ryker1]

Nah, they won't become obsolete.
^[snip]

I agree
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I am thinking the same which is they are not.
Remember that technical analysis will not work if you will use this alone --sometimes fundamental analysis is also useful in analyzing the market. But remember these are tools only to predict the market there is no becomes obsolete in my opinion. You cannot still predict the right movement of the market which is there right term is unpredictable. Who can predict using technical analysis with a consistent result? I think no one.
But if you are new in the trading world, I prefer to suggest using copy trading while gaining experience until I can manage my own.

[Bitcoin_Arena]

RSI and MACD are very old indicators, but they still work if you have observed the markets. Not 100% but they still get the job done, especially on higher time frames. One such strategy that's effective is the RSI convergence and divergence.

If the strategy was to get obsolete by now, then such strategies wouldn't work at all.

[Oshosondy]

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.

No

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.

If using indicators alone without the right strategy, losses is more possible. There are times too that indicators will fail. No matter how good a trader is, trading analysis can not 100% be accurate all the time.

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.

This is just it, if you are good in anything, you will make money. In trading, those that do not yet know about ways to make money from trading, they will lose to those experienced traders to gain, but this does not mean that experienced traders are not losing at times.

[TheUltraElite]

The reason why you thinking like this is because trading strategies are not 100% correct strategies at all. The reason why self-proclaimed gurus are going to promote them is to gain their own popularity and spread their own shitcoins. No strategy will ever be a full proof one.

The only thing that is going to help is buying low and selling high. Rest all indicators are going to only give a prediction and that too will end up 50% correct.

Eventually what I have learnt is that day trading is tough, but in long term trading, just stick to what I said, you will gradually gain profits.

[Woodrose]

I think you didn't get what I am trying to say.

Yes, I could say that most indicators work well until now and all of them are not 100% accurate. 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. You have to know how to use indicators in order for to have an edge in other traders.

Anyway, I think I would further explain my part if I will read a lot in trading. Thank you for your opinion.

[blockman]

I think you didn't get what I am trying to say.

Yes, I could say that most indicators work well until now and all of them are not 100% accurate. 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. You have to know how to use indicators in order for to have an edge in other traders.

Anyway, I think I would further explain my part if I will read a lot in trading. Thank you for your opinion.

It's okay if it will come to the point where everyone knows how to read indicators and most of the trading strategies. Still, a market is still a market for which people can read through the charts but it's not just the only thing to look at with it. It's volatility remains and if some sudden issues or news has come, that's a game changer on that and most predictions and indicators aren't always as accurate as they are. So even if the majority has the knowledge and strategies on trading, that won't make them exempted for losing.

[palle11]

I think you didn't get what I am trying to say.

Yes, I could say that most indicators work well until now and all of them are not 100% accurate. 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. You have to know how to use indicators in order for to have an edge in other traders.

Anyway, I think I would further explain my part if I will read a lot in trading. Thank you for your opinion.

I understand what you are trying to say. You are saying if every trader know and understand an indicator then every one won't make a mistake to lose his money. For instance if every trader know that RSI overbought or over sold is exhausted, the everyone knows the reversal time, I believe this is an example of what you are saying but I use to think like that too sometimes in the past but I tell you it is not possible for everyone to understand a particular way of indicator just like it is not possible for everyone to be profitable or profiting every time or the same time, you must have winners and losers differently at the same time.

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.

Indicators don't become obsolete because they are already made like that to be like that for you to change it from default settings or leave it that way depending on your strategy and the way or time you use it on. For example I don't see what is obsolete in bb, SMA, RSI,MACD, fractals or parabolic SAR. It is only you to work on it to change the settings and the time frame you use it.

[inthelongrun]

That is why I gave up trading daily. Your indicators may work until they stopped working later on. More and more indicators are developed and some others are not available on tradingview and other popular live chart providers including exchanges. But big news like the bankruptcy of FTX is probably the best and most reliable indicator. I opted to invest long-term and do a DCA rather than stress myself in the market. Maybe I will be back into day trading when the market is back, which I expect in the year of the halving and its following year which are the trend in bitcoin over the years.

[palle11]

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? 

[Wapfika]

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.

Isn’t it our advantage if everyone is using same indicator and using it as reference for there trading strategy since we are all buying at the same time which will create a strong market buy pressure to pump the price? The reason why the crypto price is very unstable is because many traders using random indicators that gives different signal result.

If we are only using same indicator then crypto trading will unite in terms of buying and selling crypto.

[palle11]

Isn’t it our advantage if everyone is using same indicator and using it as reference for there trading strategy since we are all buying at the same time which will create a strong market buy pressure to pump the price?

If this is possible then who will lose? If everyone understand when to make profit then nobody will lose including you, or you enjoy to lose? The beauty of the market is the loss and profit without this it is not trading and if you take that away from it nobody will go into it. People go into trading with the hope that they will be better profit takers but unfortunately it is not like that because of different interactive factors in the market.

[RealMalatesta]

Isn’t it our advantage if everyone is using same indicator and using it as reference for there trading strategy since we are all buying at the same time which will create a strong market buy pressure to pump the price?

If this is possible then who will lose? If everyone understand when to make profit then nobody will lose including you, or you enjoy to lose? The beauty of the market is the loss and profit without this it is not trading and if you take that away from it nobody will go into it. People go into trading with the hope that they will be better profit takers but unfortunately it is not like that because of different interactive factors in the market.

I don't think all traders will use the same indicator but there will be traders who likes to separate their selves from the crowd and will use less popular or harder indicators. In trading, there must always be a loser more than the winner or vice versa. There is no way that all are going to go in one direction as the market will lost its balance and will not be as good as before anymore.

As for the question of the OP, my response would be yes. There will always be a bad trading strategy. It may work at first or on some other times but the rest are just simply a loss. Now is there a trader who will like to use it and just incur a loss? I guess no but we must move on and make another working start.