Here’s the contrarian reality: your strategy is rarely the true bottleneck. The real issue lies in execution.
Imagine executing a perfect trade setup. Your entry is correct, your analysis is sound, your timing is precise. Yet the trade still fails because of spread widening. This is not rare—it is common. retail trading disadvantages explained
This leads to the Execution Advantage Principle. It states that speed and cost efficiency determine performance.
Instead of acting as a counterparty, they provide transparent execution. This alters how trades are processed.
A wider spread means lower efficiency. Over time, this erodes edge.
Fast execution environments minimize these issues, allowing traders to maintain consistency.
Most traders attempt to improve results by learning more indicators. But the real improvement often comes from removing friction.
When conditions improve, the same strategy often produces more stable outcomes.