Contrarian betting can steadily make a profit, but in the end it ends up causing a big loss
In contrarian trading, while you are skilled at continuing to generate profits
many traders, from beginners to advanced, prefer contrarian trading
If you consider it by experience
the more you watch the market, the more trend-following becomes dominant
because in a trending market, following the trend is extremely effective
However, on the other hand
the more contrarian trading continues
the more following the trend becomes disadvantageous
Not simply trend market → range market → trend market
and instead
range market → noise market → fake-trend market (reversing market) → range market → trend market
like this
after various market uses have ended
the trend market begins
There is a reason for this
there are traders who keep making profits with contrarian trading
and
the profits earned in that market are gnawed away by
the main exchanges of the FX market
This is why trend-following is said to be the trump card technical that actually yields profitsWhat we actually observe are patterns where range markets or contrarian profits appear, although
ultimately, it can be said that
from past to present, the pattern of trend-following winning has ended up prevailing
Therefore, even if contrarian trading is stable
in the end, the stable outcome is that trend-following is stable
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