Tradebot was an early HFT group that had a 14 year winning streak, more than 3400 winning sessions in a row. That streak was broken in 2017. There are many explanations of why their trading profitability has suffered in the past few years, with less volatility, not trading foreign stocks etc being some of the reasons. The main reason they are suffering because they have not adapted to the law of ever changing cycles. They are behind the form. It happens to the best.

Sushil Kedia writes: 

Change is the only constant in Markets.
Financial Markets are called Exchange. The purpose for which these markets got created is to facilitate exchange or produce liquidity. The market infrastructure propels this goal by enforcing only one constant, Change! Liquidity is generated by maximising the number of hands feeling the need for change. Those that get complacent with success or those who are lazy, they are the inferior DNA that the Darwinian nature of markets rejects & takes forward with itself agents of change. 
If anyone is keen on cussing speculators, they are lazy or complacent. The speculator thrives with change and is the chosen blue eyed boy of Change — the catalyst of all progress. 
If Stasis is not the anti-thesis of change, what is? The ease of finding an N day breakout, N day average, N day variable is the primordial human instinct to seek refuge in the regular rising and setting of the sun. Markets hand-pick women and men who can identify with, play with and grow with irregularity. The primordial hard-coding of the human mind to seek familiarity is so easily reflected in a normal tendency of men to seek the same table at their favourite restaurant! 
Familiarity may be breeding contempt and unwanted children yet is the most easily sought after human frailty. 
If Inventors and Discoverers propelled mankind forward by sailing with ease in uncharted waters, the speculator does it every moment. Isnt this true in, this time its different?!





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2 Comments so far

  1. Andre on February 7, 2020 10:17 am

    Great explanation Mr Kedia thank you

  2. Amit Trehan on February 18, 2020 8:04 am

    You are quite right Sir.

    Infact, the Human Genome is designed in a format wherein he can’t exist in a vacuum, i.e. he is always existing through give & take mode. The Give & Take Mode is basically not the barter system. Rather, it is the exchange of thoughts, relationships, one’s basic or hyper needs. Within the same ambit falls the Markets. Markets facilitates one of our purposes of existence, i.e. living & striving through Exchange (not just stocks or money, but everything). Hence, Markets are not created by Humans, rather they have a Universal co-existence with us.


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