..or maybe you've just walked out of the asylum into the real world
.
You still haven't answered my question of what are we poor souls to do about it as we seek to place our bets.
A few more:
You keep going on about artificial price movement. So define "artificial" for me - better still, define what is a "non-artificial" movement.
What is the evidence that 85% of us arrive at the same conclusion
and act on it within 2 seconds, particularly given that people use time frames varying from 1 minute (or less) to 1 day (or more)?
If algos are designed to "go exactly in the opposite direction" how have they got on in the current bull run - or have 85% of us been short for months? (mmm, maybe they have given the reported propensity for pounders to look for reversals).
Nah... tommy-rot is as barking as a jack russel-in-a-box, 'mental' doesn't cover half of it.
There is no panacea for you I'm afraid to say, just the ever relevant 'Be careful'.
Good question, despite answering it previously...
The present drop on both the DJI and FTSE is engineered, it has been brought about to cull large sums ready for the lift to 16000 /6990 coming shortly.
(For the site paranoiac only... send me a Postal Order for 15 shillings and I'll give you the exact date, send your request to: Horace Batchelor, Dept 1, Keynsham, that's K_E_Y_N_S_H_A_M , Bristol, England.)
We did look at action and responses (using exact simulations based on real movement) in differing incremental settings, anything between 2 minutes and 10 were all the same after a period of acclimatisation to that time scale.
I can say that for me if I kept changing my time scale repeatedly I statistically improved my winning decisions by about 5% which is just cresting the numerical 'Ooooh, that's not within parameters' point. I wouldn't read too much into that though.
The road up has been strewn with dips and slumps (you did notice those, yes?)
The objective or Term is to reach 16000/6900 this year, the rise is to be achieved as economically as possible, so there are as few profiting from the rise as is possible, so drops and slumps are part of the mechanism to profit from a fairly steeply rising market.
Drops and slumps are 'culls' are ways of achieving that profit.