The logic for trend-following during a sideways market is almost the same as the entire "MA Cross Trend" logic
Position-trend following means
in short, holding a trend until the end of the trending market
Therefore
・Williams Percent Range trend-following
・Follow the MA trend
and other trend-following/breakout logics,
compared to MA cross trend-following trailing (途転),
it is “the most stable method of trend-following.”
Above all, it is easy to understand, and once a trend appears, “it is less likely to give opposite signals in a trending market.”
With other trend-following signals,
the trend market goes up a bit and the trend-following signal appears in the opposite direction
tends to happen.
However, if the MA is established,
as long as the trend market hasn’t retraced, it continues in the trend-following flow.
That said, when it comes to a stable logic,
the profit occurs only in the profitable zones; otherwise it is a wash.
That’s because the market is full of noise.
With lots of noise, outside the stable market, profits and losses alternate.
Especially in the disadvantageous zones of trend-following markets,
I think the stop-loss is tight and steady.
However, once the trend appears, profits follow afterward,
so you should aim for those kinds of moves.
And this kind of trend-following trading logic hinges entirely on familiarity.
It is because familiarity highlights discretionary trend-following.
It is better to become familiar with trend-following discretionary trading early.
However, since trend-following continues to be disadvantageous unless a trend appears,
it is also a matter of mental trading.
The most stable trend-following logic is
MA cross trend-following, because it universally yields profits.
The strength of a trending market is its stable trend movement,
and MA cross that repeats this trend movement continues to generate profits until the end.
But at the end, something like mental trading awaits.
It takes time for the market to stabilize,
and the period that is tough for trend-following continues,
so trend-following remains mental trading until the end.
Therefore, trend-following isn’t something that is overwhelmingly effective.
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