Agreed. Many smaller, yet successful Hedge Funds limit the capital they manage for this very reason. Some strategies just don't work at certain scale.
(1) OP's strategy performs worse than the alternative (2) They already do this, and have resources that allow them to outperform OP at their own strategy
If the returns are really meaningful, i.e. better Sharpe ratio than just holding $SPY or some dead simple strategy like that, then (2) must be true at least _somewhere_.