A Method to Profit from the Market Anytime: Trend Edition

Sorry, but it is almost like gambling

Because in the end you end up taking on risk to make a profit

That is

whether it’s a momentary wind of speed

or the accumulation of plain risks

that’s all

In the normal market, only contrarian averaging down yields profit

You have to wait for time for trend-following, and you don’t know if you can win

And it often ends up in a forked state

Even after doing contrarian averaging down, ultimately

You are driven into “averaging-down hell”—this is the future that comes if you think about profits

Even so, to escape the idea of averaging-down hell

you have to impose averaging-down limits, but it is easily possible with automated trading

so I don’t think profits will be stable

When you do contrarian averaging down, you will inevitably be obstructed by the mechanism of this averaging-down hell

When a trend emerges, there is no way to escape this averaging-down hell

In the end, to escape this averaging-down hell

you must first make a profit using a profit pattern during averaging-down

then withdraw with the averaging-down hell pattern

but the number of people who can do that is overwhelmingly small

Also, at the point of withdrawal

the cycle toward profit becomes worse in a compensating way

In other words

before a profit pattern arrives

the averaging-down hell pattern arrives

the balance of profit and loss becomes unfavorable and counteracts, throwing off market sense

This is almost at an absolute level

Everything hinges on trend-following

Basically, a pattern that picks up trend-following in five minutes

This can cover all markets

Five-minute Williams percent range trend-following

Automate this to minimize losses

Then leave it as is and watch markets when a large trend is occurring

That’s all

Past losses disappear

Gold has been in a range; when a trend comes, a large trend emerges

This is the entirety of trend-following, and it is the holy grail of contrary indicators

The holy grail of contrarian indicators is

One entry

If you profit from a naked averaging-down, you end up repeating a reversal

This allows you to catch a large trend in just one entry

It’s a theoretical idea, but

In reality it becomes just theory

So you end up with a mindset of leaving a trend-following EA idle

Because timing is hopelessly off,

timing aligns hopelessly well

Just do trend-following in a large trend market

I don’t think this state will ever disappear

Because

averaging-down logic

D'Alembert logic

aiming for middle returns in a trend

and various other automated trading will be created

but a passive strategy only for large trends isn’t created

Ultimately, the motive to “build profits with other auto-trading logics” grows

only the trend-following passive approach for large trends continues to yield profits

This holds in any market—the end is that trend-following wins

However, implementing this is a tough task

It’s just a matter of being a trend-following passive model

To continuously extract profit from the market

Ultimately,

low risk: high return

low risk: mid return

In the end, it’s always about timing

But with low risk: high return

only then do profits begin to appear

so you have to adopt that strategy

In short-term battles

Contrarian averaging-down yields low risk: high return

but in a trending market it becomes “averaging-down hell”

and the P&L grows in a Martingale-like fashion, which is forbidden

By aiming only for low risk: middle returns

you can’t truly target the real trend market

and your performance becomes unstable

If you do contrarian averaging-down

and the trend truly comes, you will leave it idle for a long time

If you can really do that, fine

If you cannot, discretion is not something you should do

Entry timing is

usually unfavorable

the market direction being wrong is normal

there is only one proper timing for entry

and a single setup is enough—the market direction is usually wrong

then you end up entering after waiting twelve hours

or simply leaving trend-following idle

Both contrarian averaging-down and trend-following idle

are based on market sense, not entry timing

Yet both lose when the market tilts

so the risk is very high; it only looks reduced

Ultimately trend-following idle is deemed acceptable just like contrarian approaches

Behind contrarian averaging-down

there exist an overt and covert desire to make profits and recover losses

and to reconcile those sides

So in the end you cannot escape the mechanism of averaging-down hell

Averaging-down is discretionary, but

unless you take an infinite averaging-down form, it won’t yield profitability

Profitability of averaging-down

is based on 1:1 or 1:2 continuity

In a reversion market, profits appear,

but in a continuing market, losses cannot be caught up

As profits arise, they increase

once a continuing trend appears, everything spirals out of control

I don’t think you can count on recovering losses at every turning point

If you lose in both directions, your market sense collapses

In the end, with contrarian strategy you stay contrarian

with trend-following you stay trend-following

You have no choice but to believe in the same direction

It’s simply about selling when prices rise and buying when they fall

Commit fully to trend-following

Keep entering in trend-following to chase the trend or enter and aim for profitability

Even if you increase the number of entries

you will not necessarily capture higher-profit pips

Whether trend-following or contrarian, there is no advantage in two consecutive moves

Any perceived advantage is only temporary

Spamming trend-following entries to chase the trend

means you only profit if the attempt succeeds

↑

you’re simply employing the opposite of contrarian averaging-down

↑

If you view it as a contrarian indicator, you build a trend-following pyramid

(Shorting with a 20-pip stop and a 10-pip averaging-down point—do the opposite)

Contrarian

Stop loss 20 pips

Averaging-down point 10 pips

Take profit location = when profits exceed 20 pips beyond the performance

Frame trend-following pyramid as a contrarian averaging-down stop-loss in reverse

Market sense at this moment is “not needed”

And that becomes the basis for “the plan to increase”

More than trend-following, it ends up becoming a contrarian indicator, which is the logic toward trend-following

Evaluate with a total of +5

With the current results, take profits at +5 return

To always increase,

get used to contrarian indicator trading

That’s all

Trend-following pyramid and trend-following setup, that’s all

Think in a 1:1 ratio

Then design contrarian averaging-down setups

Assume you are doing 10 averaging-down moves

In the end, the 1:1 of these 10 averaging-down moves will lose, right?

Then what happens to the trend-following pyramid?