[Question] Even if I try to use Bollinger Bands for trend-following, it’s impossible. I will absolutely be deceived. Could this perhaps be usable for contrarian strategies? [Answer]
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A trading method that earns from both the outer and inner bands using Bollinger σ
【Questioner】
Even trying to use Bollinger Band breakout along with the trend is impossible
I will absolutely be tricked. Could this maybe be usable for counter-trend trading?
【Answer】
The method that is used in a reverse manner is
the counter-trend of Bollinger σ
Originally, trend-following means “not that successful.”
In horse racing as well, to increase you must seek profit margins above all else
Even if the hit rate is low, if the profit margin is high you survive
This also applies to FX, and in FX especially it is easier to leverage
Most people who trade FX prefer counter-trend
Because most of the time the market appears to be ranging
However, in terms of profit, it is the slow-and-steady approach
This means that losing leads to a big hit when you win
Those who can do this well can handle counter-trend trading well
But since most cannot handle it well, they tend to follow trend trading
Trend-following has a low hit rate, so as long as you enter, you do so
That’s fine—prioritize profit margin above all
If you understand what you’re doing to grow, you’ll be better off pursuing trend-following
In short-term phases, counter-trend is advantageous
In longer phases, trend-following becomes advantageous
Understand that and use Bollinger Band trend-following accordingly
※ If you want to continue increasing in FX, go here ↓
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