Why can’t I win with a simple, straightforward bet? Here’s how it happened
Trend following in automated trading
The point of view is good
but that’s the only good part; trend following ultimately ends up with round-trip losses and consecutive losses
confirmed losses across multiple positions
Even if there is a vow to have only one position, it will be the same
it becomes multi-faceted
When the actual trend appears, you can increase
but when you close it, the results of losses and profits cancel each other out
In short
Stop losses are destined to incur losses
If you’re going to use a stop loss, it must be "strictly trend-following" and "the timing of taking profits is everything"
Because you can’t do this
Trading FX by yourself tends to be a "waste of time"
Because trend following itself is designed to lose
Even if the market direction is right, unless it’s a trending market you will lose everything
Because you must increase profits
There is no meaning in the aspect of increasing profits
Because you must do it at the final profit
To keep doing that, you need a corresponding amount of capital
That’s all
If trend-following trades are purely intuitive, it’s meaningless
If you don’t make profits mechanically, it’s almost meaningless
Automated trading can do that
If you’re trading mechanically, you wouldn’t be trading without automated trading
Trend following outside automated trading is almost meaningless
Even if you try
Starting with 100,000 and after 10, 20 years you won’t reach 100 million
Trade slows down depending on capital
Why it slows down?
It isn’t about capital per se
To be honest, the point here is
Time is the correct answer
Life and time run out
That’s why unless it’s a Holy Grail trade, it’s meaningless
Like 100:1
Even if you aim for 10 pips for 10 yen
Whether you can make a profit is difficult
Because it takes time to reach that point
In other words, compared to the usual volatility of price
When a trend emerges, the price also expands by the same volatility factor
And depending on the market,
It often happens after a long range period that a trend starts
The trend continues for a long time
And, ultimately, because you know the moment of profit-taking, you know the proper price level
That is impossible
In other words, what you can do
Is only the "most perfect trade"
Everything
Profit-taking by averaging down = stop loss
Loss-cutting by averaging down = moment of profit taking
It’s like that
Rather than doing it with a pyramid
You can pursue only profits by having a single sudden move with a snap empty order after an averaging-down miss
Once you hold multiple positions
Multi-position trading is all the same
Even if profits and losses differ, the resulting rate is almost the same
In other words, what matters here is the profit
Traders have no talent
Traders have no real ability
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