Last time, instead of looking at ACE positions one by one, we started to look at them as a herd.

On the profit side, a herd where profits accumulate.
On the loss side, a herd where losses accumulate.

I came to call ita shining treasure chest, anda rotten orange box.

But as I followed the loss side through time, another movement caught my attention.

Not only gathering

At first I thought that losses were just gathering at the same time.

When I traced them in order, however, it was a little different.

The first position is struggling. After that, the second enters, and that second also struggles. Furthermore, the third, fourth, and so on, similar-direction, similarly judged positions increase.

Losses are not just lined up.

They are increasing one after another.

One loss calls the next loss

Of course, positions are not directly doing anything to each other.

But ACE looks at the same market.

Even while the first is struggling, if a new entry condition is met, the next position enters. In other words, when the market at that moment and ACE's judgment are not aligned, continued similar judgments lead to more struggling positions.

Is this proliferating?

When arranged in time order, it gradually seemed so.

What was single becomes two.
What was two becomes three.
Before you know it, similar positions are increasing around you.

It’s not merely a string of consecutive losses, the view is a bit different.

Proliferation.

That word suited the movement quite well.

And then “infection”

The term rotten orange box takes on a slightly different meaning here.

At first, the image was that losses were gathering in the same box.

But when viewed in time, one becomes bad, another near it increases, and the next increases further. It looks as if the bad state is spreading little by little.

So, next comes

infection

as a word.

Like a virus

It proliferates.
It infects.
Similar things keep increasing one after another.

By this point, the view is quite clear.

Like a virus.

Of course it isn’t truly infected.

But as a developing image, it was fairly easy to understand.

If only one failure, it’s still small.
But if you leave that state, similar positions multiply, and by the time you notice it, the whole herd has become a large unrealized loss.