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This chart shows the positions Myfxbook members have on EURUSD. As you can see, the majority is nearly always wrong: They hold long positions when market is falling, and switch to short when it rises.
It makes sense though: the industrial forex players who make the most money arent on myfxbook - the money flows from small myfxbookers to the big players, which explains the graph above...
Of course profit-taking and long-term trading must affect this, but it still seems to give pretty good advice.
Has anyone tried simply betting against the community preference, no matter what the price does?
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Interesting that no one has said anything about this. It is indeed a topic that some people have thought about it before, but to my knowledge no one has ever done it. I think it's something that would be quite difficult to backtest, but has some merit and would out perform most traders on this forum. I believe Oanda and FF also have metrics to show net positions of traders, it would be interesting to see maybe a system that just uses a tally between the three to trade. I may consider doing this in a trade journal if you don't
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Myfxbook community outlook
Yeah, that strategy is pretty hard to write in ea code and backtest it.
I'm afraid I don't have time for manual trading now, but I will definitely use this counter-the-masses method in my next manual trade experiment.
If you decide to see if this is profitable, please post your results here!
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Hi... The chart seems to show that the retail crowd is contrary to the trend, but......
Doesn't closing a previous sell position result in a buy? And with this aspect alone, there is quite a bit of profit taking at 1.1 and 1.05.
Unless myfxbook specifically focuses on open positions, in this case could be that the crowd is wrong.
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The red and green areas are the total value of lots traded at the moment. It seems that majority of myfxbook use very short-term counter-trend strategy and so they fail in (even slightly) trending market...
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