Mechanical trend-following increases with major trends and the pyramid approach
Trend-following is
increasing with the trend + the pyramid itself
Contrarian is
increasing with the range + averaging down itself
Whether the profits are short-term or long-term
doing so is very similar to martingale pyramiding
Trade persistently until a trend emerges
incur losses
Realize profits until a trend appears
Losses are short-term, then profits continue
The easier the difficulty, the quicker the profits come
The harder the difficulty, the longer it takes to realize profits
Nampein
At the end, failure to switch to the trend or being pulled by the trend leads to a heavy loss and it ends
Even if you win by luck, it ends when a trend appears
Even with a stop loss
Averaging down has a profit margin, but you end up being pulled by the trend
There is no choice but to trend-follow
Other than trend-following, if you make a small mistake, you end up losing through reversals and it decreases a lot
You have no choice but to scalp with trend-following, then steadily increase profits toward the swing direction
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