Effective logic in automated trading

What is effective in automated trading

Reverse Martingale

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

is the logic

Trend-following + reverse Martingale

is an effective logic

A trend market will eventually appear

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

Both

are trend-focused

because they aim for breakouts with follow-through rather than pullbacks, since they are trend-focused

that is the effective logic

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

This is because it goes against the characteristics of losing traders

In other words, if you traded only with this logic,

auto-trading will eventually increase, so capital-raising trades would succeed

I believe that's all there is to it

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