Why might an edge gradually disappear as more people adopt similar trading strategies?

A trading strategy performs well in backtests.

More and more traders discover similar signals and start entering at similar prices, and taking profits or cutting losses at similar levels.

At first, the strategy remains effective.

But after some time, traders begin to notice that price movements after entry have changed, slippage has increased, profit potential has shrunk, and the strategy’s once-stable performance has started to fluctuate.

Why?

One easily overlooked fact is:

A trading strategy’s edge

#美国10月CPI即将公布 #WCTCS9 On the Eve of CPI: We’ll Know Tomorrow at 21:30—My Market Forecast and Three-Step Strategy

Tomorrow (Tuesday, November 10) at 21:30, U.S. October CPI will be released.

The market has already priced in about a 77% chance of a rate hike in December—once the data is out, that will either be confirmed or disproven. This post covers my forecast and what I plan to do.

【My Forecast: The Base Case Is “In Line With Expectations,” With Volatility at Either Extreme】

September CPI rose 0.6% month over month (the biggest increase in five months) and 3.7% year over year; core CPI r

The Consumer Price Index is no longer merely an economic statistic; it is the single most volatile catalyst in global financial markets.

As the next U.S. CPI data release approaches, markets are bracing for a definitive read on the inflation trajectory. In the current economic cycle, the Federal Reserve’s policy path remains strictly data-dependent. A deviation from consensus expectations does not just adjust interest rate probabilities; it triggers immediate, violent repricing across every major asset class. The era of forgiving inflationary prints is over. The market now demands empirical p

Almost there—draw the line precisely and see if it can make a run at 1890 on a rebound over the next 2 days, then just do it

After Compute Dominance, the Next Pricing Power Is On-Chain!
A Sequoia partner called Jensen Huang one of the greatest entrepreneurs of our time and indispensable to America’s AI leadership.
But the more concentrated compute becomes, the more it needs a decentralized settlement layer: idle capacity in GPU clusters is being tokenized, inference tasks are starting to be verified on-chain, and AI agents naturally make payments in stablecoins.
The next question is who can turn NVIDIA’s chips into a global public network that anyone can access, price, and share revenue through—that’s what it means

Why can more perfect backtest performance sometimes be more cause for concern?

In cryptocurrency trading, there is something that can make you feel especially confident: a beautiful backtest curve.

A very high win rate, steadily growing returns, a tiny maximum drawdown, and profits in almost every market phase.

It looks as though the strategy has already figured out the market.

But here’s the problem: if a strategy is built by repeatedly adjusting historical data, it may have learned not the rules of the market, but chance patterns in the historical data.

This is the core risk of strategy

10,000U principal, currently 1.25 million U

Why Doesn’t Trading More Often Necessarily Lead to Higher Profits?

Many traders have experienced this:

When the market is quiet, they feel there are no opportunities; when volatility picks up, they worry about missing out.

So they open their trading app more and more often and enter trades with increasing frequency. Their accounts seem busy, but their returns ultimately show little improvement.

Sometimes, as the number of trades increases, losses grow instead.

The question is: Are you capturing more valid opportunities, or just creating more trades?

The number of trades reflects activity

Jensen Huang having an affair—what does that have to do with my account?🥲

$SOXL
$41 was the double top target and it dropped to that level. This average matters because we saw absurdly sharp selloffs below it during the 2022 bear market and the tariff crash. They always turned out to be major opportunities. If support at $41 breaks, we could see another absurd selloff

$BTC
The downtrend continues, and another short trade scores a win
After the sharp overnight sell-off, the market entered a weak recovery. It rebounded to around 76210, met precise resistance, and pulled back. The short was entered with the trend and closed successfully for profit at 74662, delivering a 398.62% return with 200x leverage.
#70%山寨币跌破200日均线
The broader downtrend channel has now opened up, and every rebound is an opportunity to enter a short at a higher level.
Stay focused on shorting with the trend, avoid blindly buying the dip, and simply follow the trend to steadily lock in pr

Why Can an Account Still Be Liquidated Even When It Has Funds?

Many cryptocurrency futures traders have a question:

Why does an exchange liquidate a position even when there are still funds available in the account?

The reason is that futures liquidation mechanisms do not simply check how much money remains in the account. They assess position risk, margin requirements, and platform rules.

Having funds in the account does not mean the current position is necessarily safe. Understanding maintenance margin is key to understanding liquidation risk.

I. What Is Maintenance Margin?

Maintenance

Is BTC increasingly like the Nasdaq’s twin brother? Why is it always the first to follow when U.S. stocks fall?

People used to call Bitcoin digital gold. Now, many investors have found that sometimes it looks more like a tech stock that trades 24/7. The Nasdaq falls, and BTC plunges along with it; U.S. stocks rebound, and BTC quickly recovers too. This display of brotherly affection has gold wondering: “I’m the safe-haven asset—why are you two acting like family again?”
Actually, it’s no surprise that BTC and U.S. stocks have become more closely correlated. As institutional capital, spot ETFs

☀️ GM! New week, new plot twists. 🎬
Strong US jobs data, a Friday tech rebound, and BTC under pressure. CPI is up next. 👀

📌 What's the next scene for markets?
₿ BTC: Recovery or more downside?
💻 AI stocks: Can the rebound last?
📊 CPI: What could shift market sentiment?

🎁 Share your market outlook on Gate Square. Post to claim a red packet, with bigger rewards dropping at random. Quality posts may also get featured.
👇 Share your take: https://www.gate.com/post

Why can a high backtest win rate still lead to ongoing losses in live trading?

Have you ever seen a trading strategy like this?

Its backtest win rate reaches 70%, and its equity curve climbs steadily. Its parameters have been optimized repeatedly, and its historical performance looks impressive.

But once it goes live, the account starts bleeding slowly.

Some people think market conditions have changed, others think the parameters still need work, and some start looking for new indicators.

But before changing the strategy, there is a more important question:

Does your backtest really simu

2026.11.9 BTC/ETH/XAU/SNDK Analysis
Markets surged and plunged in early Monday trading, with $1.015 billion wiped out in liquidations over the past 24 hours and 149020 people wiped out;
The long-to-short liquidation ratio reached 10:1, putting an end to last week's call—the bulls were practically wiped out!
XAU is moving independently, surging $100 in early trading; keep watching the 3970-4000 level: if it doesn't break below decisively, that points to a potential short- to medium-term bottoming attempt. No need to hold on too long; take a small position near the bottom of each swing and move