A trading strategy's edge erodes when you run too much capital through it or when it goes public. Running $25 million through a strategy that exploits small market gaps fills those gaps and kills the advantage. Orb, which went viral recently, will probably lose its edge within three to five years.
I have a really incredible strategy, okay? I share this strategy to you and maybe you have a personal account of $25 million, so you take heavy execution. The edge can disappear because the amount that you execute can already fill the gap of the opportunity. So edge decay, it's real. And when they say, if you share your strategy online, algorithmic strategy, you can destroy your edge, it's true. It depends on the asset. On the S, it's not so easy, okay? But still, now that Orb got viral, probably in the next 3, 4, 5 years, the edge will decay also there.
