When traders execute large volumes, they fill the market gaps their strategies exploit, causing edges to decay. The Orb strategy recently went viral and will likely lose its edge over the next three to five years as more people use it. The S&P is more resilient to this decay than other assets.
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.
