Explain from the perspectives of safe operation and capital increase using trend-following and binary
Why only trend following wins in the market
Mean reversal and trend following have opposite risk and return outcomes
When the return comes back later, it becomes a larger profit in return
In other words, it means you should mainly chase with trend following
From the perspective of binary ladders
Risk is reduced, returns change, partial profit-taking is possible
Ladder is still investment-oriented
Because there is risk reduction + return rate + partial profit-taking, averaging down is useful and there is no reason not to use it
If you do this in FX, you are guaranteed to lose
Because latent risks are present
In other words, discretion should be narrowed down to ladders only
In binaries, the notion is to cover losses of other assets with puts, but
I think it only leads to losses — you cannot cover
Options are the same; they cannot be called cover
The risk-reward changes too much, making it hard to handle
Binary is
A characteristic of gambling
There are profit zones, recovery zones, and miracle zones
There are abundant profits, but they are recovered in the recovery zone
There is merely a miracle zone where you can win by miracles
From its fundamental structure, gambling-type properties exist
To make binary tradable as investment
Under the rules of High/Low and Ladder, unless you adopt a strategy that reliably grows, it is just gambling
Because binary is gambling by logic, you cannot exit gambling from within
Binary is pointless unless you have a strategy that grows every week
If you adopt averaging down, you will not make money
Leaving yourself to partial profits is gambling
Payout too low relative to risk is gambling
To rely on the market itself is gambling
If you are simply averaging down, binary is a waste of time, so don’t do it
Just leave it to automated trading — profits and losses are luck
A averaging-down strategy ends in certain death in a trend and ends with a downward slope
Waste of money, waste of time — that is gambling
If you cannot increase capital, it is meaningless
If you intend to increase capital
Just aim for high leverage, trend, and trend following
It takes a long time, but that is everything
Otherwise, you should realize you are surviving in the middle of intraday scalping
You don’t know when the market will move
If you are trading with time limits like binary, it is gambling at best
If someone only considers capital increase, they wouldn’t do binary at all — they would just trade FX
Safe operation is fundamental
A gut-feel trade is meaningless; because it is influenced by intuition, performance deteriorates as results worsen
If you are thinking of increasing capital
It must be safe, not unstable, profits must be secured, and you must be able to grow through fluctuations
In other words, all notions of stability are derivatives of averaging down — all derivatives of averaging down
The risk that exceeds the return is too sloppy—an extreme of the extreme
Time is a waste, stop — look only at yourself, if you want to increase capital, do it safely
Don’t seek stability—pursue only profit margin
If you do that, you will realize you must trend-follow regardless
If you do not trend-follow, you will be in time waiting + reserve trades
And trying to chase such trends in binary makes you lose incredibly easily
In binaries, the outcome is determined by risk and return as predetermined
This is the same for both High/Low and Ladder
Binary is driven by win/loss probability, so time is wasted
Conversely, binary pairs well with anti-martingale and Darabs’ methods
More than stability
More than the ability to increase
More than profit
Only consider that you are increasing capital and that capital can be protected
Aim to increase while preserving — if you think about that, you cannot protect it
The rule is that the mechanism of capital increase must exist; everything else ends — that’s all