Short excerpt from a Kardec Trader YouTube video arguing that the fundamental or 'natural' laws of markets remain constant over time, but liquidity varies. The speaker notes that lower liquidity (in futures and stock markets) forces traders—especially large traders and hedge funds—to change or abandon older strategies and to seek available liquidity before placing large trades.
Do you still think the laws of the market have remained the same? The natural laws of the markets every time the same. But the liquidity this is not every time the same. Surely we have times in the future markets, in the stock markets, the liquidity will be down and we must look for it. Because when we trade big trades, you must have a look for the liquidity. Then you have a because you have a problem when you become stop losses and there is no liquidity inside. For example, Avdax, we like it to trade in the morning and you have tax future. The liquidity is sometimes so low actually that you must decide it a good idea to trade. And for bigger traders like hedge funds and so on, it's not possible to trade strategies what you traded 10 years before because of the liquidity. But the law, the nature law, what happened on the markets for me is every time the same.
