The market policy is unpredictable, which is why automated, trade-like predictive reversal reactions are performed
The market's direction is unpredictable where it changes
Because it is unpredictable, in order to prevent it in advance
preventive measures are necessary
In other words, to recreate in trading the idea of
“this market will probably move” in an automated trading mindset
What that means is
When reducing losses dispositionally in an automated trading manner,
you shift the logic the moment you feel the frequency of losses is likely
By doing so, you can take preventive measures more easily
Using this as the turning logic for trend and range markets is effective
Ultimately, what you’re doing is forecasting or misforecasting market trends and ranges
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