Effective logic for automated trading

What is effective with automated trading

Reverse Martingale

Aiming for small losses and large profits like the third wave of Dow Theory

is the logic

Trend-following + reverse Martingale

is an effective logic

Since a trending market will appear at some point

Also, trades that only aim for profits at timing like the third wave of Dow Theory are effective

Both

are trend-following

since they are trend-following, they aim for breakout momentum rather than chasing retracements

which makes the logic effective

If you combine that with reverse Martingale or pyramiding, it becomes effective

This is because it does the opposite of what losing traders do

In other words, if you were to trade with only this logic

automated trading will eventually grow, turning into capital-raising trades

I just think it’s that simple