Reasons why going with the trend is more effective and why trend-following is close to a holy grail
When listing methods to increase in daily markets and in the overall market
“To profit from daily markets”
Counter-trend trading
increases because you admit a loss somewhere
Trend-following
increases because you admit a profit somewhere
“To profit from the overall market”
Counter-trend trading
ultimately loses
Trend-following
if you keep at it, it will eventually yield substantial profits
Counter-trend trading
Risk: Reward tends to grow larger as you proceed
If you incur a loss, stop trading immediately; this allows you to continue increasing
Trend-following
is a method aimed at returns from the start
If you apply that to daily markets, the only way to make a profit is to pursue short-term gains
In the overall market
Trend-following will ultimately “always” be profitable
This works precisely because it’s a trend-following logic
Even when considering Live Roulette, it’s understandable
Trend-following ultimately yields profits
The Holy Grail is established from trend-following
Reasons why counter-trend trading is **
Because it profits daily, counter-trend trading seems advantageous
Because one day’s loss can be offset by that day’s profit, it seems advantageous
Later, even if you endure to increase, you realize the market becomes trend-dominant and you can’t handle it
Perseverance and trial-and-error prove wasteful
That’s all
A waste of time, so methods like counter-trend or anti-Martingale
It’s better to devise methods that yield larger profits
Counter-trend averaging down yields large profits but carries large latent losses
※ For those who want to keep earning with FX, see here ↓
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