[Question] I don’t know how to determine it accurately. Although I understand that a “rollover trade” theoretically benefits, [Answer]
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How to repeatedly trade reversals with a precise method
【Question】
I don’t know how to judge accurately
I understand theoretically that reversal trading can be profitable
but it seems I cannot understand it systematically
because I don’t know where the reversal point is
I understand this is the start, but
sometimes I find reversal points along the way
but profitable traders don’t reverse at that point
【Answer】
That’s right
Profitable people discern it at that point
I think this is probably the place people call “discretion”
Often people say “mechanical” or “no discretion”
they apply discretion at such points
regardless of what kind of signal tool it is
because without applying it, automated trading is sufficient
However, not all automated trading in the world yields good results
Even if results are good, you will inevitably experience drawdown like curve fitting
In other words, you cannot maintain stability
That is why the ability to discern discretion at these points is crucial
If you want to survive even a little,
be careful at these points
Because it will surely become your strength in return
【Question】
Thank you
I think my thinking was indeed too naive
By the way, Mr. Amemiya, are you also a discretionary trader?
【Answer】
I am absolutely a discretionary trader as well
Signal tools are visually easy to understand, so I use them
But, ultimately discretion wins
As you’re told, discerning discretion along the way is
what determines whether you win or lose, whether you increase or decrease
Therefore, you should identify such parts without taking a long detour and press forward
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