【FX】The Difference Between a "Method That Continues to Function" and a "Method That Stops Functioning"【Investment】
I asked other AIs as wellWhy is “human psychology dependence” more enduring?The market is ultimately a collection of “humans (+ algorithms created by humans)” → Algorithms are still built on “rules designed by humans,” so fundamental emotions and cognitive biases (FOMO, late cutting losses, panic selling, etc.) do not disappear. This becomes the source of a “permanent edge.” → Therefore, proverbs like “ trends are your friend,” “don’t go against the trend,” “buy at the bottom of fear, sell at the top of greed” continue to be valid even after decades. On the other hand, strategies that rely on only a specific indicator, only a specific time window, or only a specific market reaction to news will quickly lose their former edge as market participants, algorithms, regulations, and liquidity change. This phenomenon is called “edge decay.”
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