Is the smart money concept strategy still working nowadays

[NOUHOBBAD]

The concept of "smart money" generally refers to the idea that institutional or experienced traders, often with significant resources, have a better understanding of market dynamics and can influence price movements. The notion suggests that following the actions of these "smart money" participants can be a profitable strategy. However, it's essential to recognize that financial markets evolve, and strategies that were once effective may lose their edge over time.

As of my last knowledge update in January 2022, the "smart money" concept is still discussed and utilized by some traders, but success depends on how well a trader interprets and adapts to market conditions. Here are a few points to consider:

1. Changing Market Dynamics: Markets evolve, and the behavior of institutional or "smart money" participants may change. Regulatory changes, technological advancements, and shifts in market sentiment can influence the effectiveness of certain strategies.
2. Increased Access to Information: With the rise of technology and increased access to information, retail traders now have more tools at their disposal. Institutional investors may still have advantages, but retail traders can also access sophisticated analysis tools and real-time information.
3. Algorithmic Trading: Institutional traders often use algorithms for execution, and high-frequency trading has become more prevalent. This can impact market dynamics and how certain trading signals are interpreted.
4. Adaptation of Strategies: Traders need to adapt their strategies to current market conditions. Relying solely on historical approaches without considering changes in the market environment may lead to suboptimal results.
5. Market Manipulation Concerns: There are discussions and concerns about market manipulation and the impact of large players on market movements. This has led to increased scrutiny and regulatory measures in some cases.

It's important for traders to be aware of these factors and continuously educate themselves. Backtesting any strategy thoroughly and considering the current market environment is crucial. Additionally, risk management remains a fundamental aspect of successful trading, regardless of the strategy employed.

As always, market conditions may have changed since my last update, so it's advisable to check for more recent information and consider consulting with financial professionals or experienced traders for the latest insights.

 

[franzschubert]

The concept of "smart money" generally refers to the idea that institutional or experienced traders, often with significant resources, have a better understanding of market dynamics and can influence price movements. The notion suggests that following the actions of these "smart money" participants can be a profitable strategy. However, it's essential to recognize that financial markets evolve, and strategies that were once effective may lose their edge over time.

As of my last knowledge update in January 2022, the "smart money" concept is still discussed and utilized by some traders, but success depends on how well a trader interprets and adapts to market conditions. Here are a few points to consider:

1. Changing Market Dynamics: Markets evolve, and the behavior of institutional or "smart money" participants may change. Regulatory changes, technological advancements, and shifts in market sentiment can influence the effectiveness of certain strategies.
2. Increased Access to Information: With the rise of technology and increased access to information, retail traders now have more tools at their disposal. Institutional investors may still have advantages, but retail traders can also access sophisticated analysis tools and real-time information.
3. Algorithmic Trading: Institutional traders often use algorithms for execution, and high-frequency trading has become more prevalent. This can impact market dynamics and how certain trading signals are interpreted.
4. Adaptation of Strategies: Traders need to adapt their strategies to current market conditions. Relying solely on historical approaches without considering changes in the market environment may lead to suboptimal results.
5. Market Manipulation Concerns: There are discussions and concerns about market manipulation and the impact of large players on market movements. This has led to increased scrutiny and regulatory measures in some cases.

It's important for traders to be aware of these factors and continuously educate themselves. Backtesting any strategy thoroughly and considering the current market environment is crucial. Additionally, risk management remains a fundamental aspect of successful trading, regardless of the strategy employed.

As always, market conditions may have changed since my last update, so it's advisable to check for more recent information and consider consulting with financial professionals or experienced traders for the latest insights.

The concept of Smart Money will never ever be outdated, since there are always market participants with a lot more financial power, than the herd of retail traders. In Forex it is obvious, that there is an interbanking market of the 8 most powerful banks in the world, which provide liqudity to the whole forex in taking always the counterpart of the positions of the traders. If traders are net long, the banks are net short and vice versa. With massive accumulation and distribution of positions the banks can move the markets in their favor, "making" the market und "making" the sentiment of the traders, fear and greed, influencing their BUY and SELL behavior and therefor always being the winners in the game. This is not a conspiracy, but the only way, such a liquid market like forex can be established.
And yes, there are better trading possibilities for retail traders now, than in the past, but still there are only a few percent of them profitable in the long run. I guess, the ones who survive, are the ones who have some understanding of how the Smart Money is acting.

 

[mark1504]

Hi,

There is a free smart money concepts indicator from LuxAlgo that you can try out on tradingview is you want to test it.

Just open a free basic membership with tradingview, go to indicators and look for smart money concept indicator from LuxAlgo.

Hope this helps.

 

[Kaddish10]

Smart Money will always works, cause market have patterns. So, good luck on this. Unfortunely, i dont patience to trade SMC.