I am going to quote (and translate) Javier Colon:
“They tend to be uncorrelated between other Darwins of the same type (snipers), because they look for very short term market inefficiencies”
“Another type of Darwins are what I call Sniper, for example NTI, ERQ, STV”
“Something curious about them is that they start doing a lot of trades but little by little they seem to exhaust and they trade less and less. But keeping an positive edge/performance.”
Spanish original transcription: “Llama la atención normalmente en estos Darwins, que suelen empezar haciendo muchas operaciones y poco a poco se les van agotando y cada vez van operando menos y menos. Pero mantiendo un sesgo positivo”
If interpret correctly, Javier is suggesting these types of strategies, due to some fundamental reason, will tend to trade less and less indefinitely. That is difficult to grasp for me, I don’t understand why that would be true. But if you look at the facts, it’s kinda happening, the 3 quoted Darwins are trading very very little and almost in all casses trading frequency has been decreasing forever.
QUESTIONS to the community and specially to @javicolonbo if he’s available since I am very specifically quoting something he said. Ofc, It’d also be awesome to hear from @OakLadder, @KlondikeFX @finbou @TitanEUR
Why would a type of trading strategy (read: Darwin) trade less and less indefinitely?
Wouldn’t the trade frequency depend on the market cycle?
Is there a fundamental reason for which these types of strategies have a limited life span? (some argumet of the sort: the short term inefficiencies of the market that these traders are benefiting from are doomed to disappear after some years because of market adaption[?])