The biggest weakness of contrarian average-piling
Why is reverse-pong averaging (counter-trend averaging) said to be dangerous?
Because it has characteristics
Because it is extremely weak in trending markets
That simply is the case
If the trend does not accelerate, reverse-pong averaging can be effective
but it accelerates and continues, so its weaknesses become prominent
By being exposed to the biggest weakness of averaging down (picking the bottom),
the loss direction becomes stronger, causing averaging-down to lose
If you do not trade, which is the weakness of reverse-pong averaging,
reverse-pong averaging can be effective
However, when the trend accelerates later, won't you hesitate to cut losses?
Therefore, reverse-pong averaging initially yields good profits, but few people can sustain it
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