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Can Day Trading be profitable for retail?

  #93 (permalink)

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blb014 View Post
How would they know which instrument has the higher win rate?

I would think The players in the cash Fx would be more traders with smaller accounts and less experience. I know forex is a huge market but I have viewed it as a riskier market hence riskier traders

They don't need to. We're talking about the first order statistics of the whole group, not its individual agents. All you need is classical multi-agent swarm/contagion/network effects.

If you're talking about individual agents, of course there's second order effects like "Optiver has better profitability in options than in futures", which is why firms do specialize in asset classes and people do spend a lot of time deciding which asset class to go for in hopes for a minor optimization. But these second order effects are weaker than the no-arbitrage on the first order, which is partly why Optiver doesn't just concentrate all their efforts in options.

I trade in a good number of markets and I can tell you that the no-arbitrage rule across asset class is extremely strong.

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