The market has neither a correct answer nor a clear direction from the start
Let me start by saying this
There is no correct answer or perfect method from the very beginning in the market
Because if there were a correct method, automatic trading would increase capital immediately
However, with automatic trading you need to use money management to grow
In other words, the market appears to behave like a random walk
Moreover, it acts in ways that do not encourage increasing the number of automatic-trading logics
Indeed it moves with trends, but
you don’t know when it will move
and firstly, the move into that trend is not accurate
So it’s a simple matter
If you chase the trend with trend-following, you’ll lose a lot
This means that when the trend is not an accurate movement, you’ll take a lot of stop losses
Quite straightforward, isn’t it
The same thing happens with contrarian trading; that’s all there is to it
In other words, there is no superhuman win or flawless method in automatic trading
The monthly return is at best around 4%
5% monthly is the maximum profit you can expect
When considering drawdown
Because the market continuously produces scenarios where neither trend-following nor contrarian nor ranging strategies work
If that happens, even if you diversify logics in automatic trading, you’ll still lose
That’s where drawdown comes into play
With drawdown, even low-risk approaches can reach around 18%
The most you would expect from a reliable logic is to reach that level
Even stable logics can reach that level
But a stable logic is
one that has both trend-following and contrarian trading with calm, settled limits
In other words, it’s about universal market interactions
Forex street, in particular, encourages such trades
Therefore, even if performance is sluggish, you can still generate profits
Essentially, the market is
dependent on the market, but that conditioning strongly influences outcomes
A market-dependent approach is
based on the market’s movements, after all
It is driven by the relationship between price and time
Technical analysis or
It’s not rooted in the ideas of trend-following or contrarian or trend
For autonomous trading to achieve stable logic, there tends to be
more trends
Ranging markets require you to time entries
However, trends are easier to time
The reason is
After breaking out of a range, a trend occurs
In other words, you can avoid entering inside the entire box
You gain an advantage by avoiding unnecessary entries
And, to return to the initial topic
I said there is no correct answer in the market
This means that a trend does not necessarily occur
To put it differently,
Even when you break out of such a box and trade the trend, you will still experience continued losses in some markets
Moreover, markets where the trend does not continue will keep appearing
Therefore, there is no correct answer in the market
So, if you consider that some markets end midway
Every logic will incur drawdown
Even with diversified logics
During drawdown, all diversified logics lose proportionally
The idea that there is no correct answer in the market means
Be cautious of simplistic trading viewpoints
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