Revealing a system will degrade system performance?
I came across this intersting article: http://www.traders.com/Documentation/FEEDbk_docs/Archive/0996/Abstracts0996/Luisiabst.html The conclusion I make of that is as more and more people buy (based on this popular indicator) before the news (too many buyers ahead of the news), the market is no longer oversold, rather it is neutral (a short-term top), and so it requires very few sellers to push the market back down continuing the previous downtrend – the core of the Contrarian theory – the only one that works. The practice of this theory is simple: Find out the guy who the majority are following and just do the opposite of what he recommends as to buy and sell.
