Don't just chase range-bound markets! Because you won't be able to avoid risks in a trending market.
I think aiming for range-bound markets is wonderful, but
if you only go after range-bound markets
even without averaging down
when a trending market (a trend that does not revert) arrives, it becomes “unavoidable” to avoid losses
When it comes to range-bound market strategies, people tend to emphasize stop losses, but
even if you emphasize them, it’s “meaningless.”
To put it another way
because a market with no tendency to revert appears
the moment a non-reverting trend market appears, it becomes very troublesome
Therefore
a common stop-loss pattern in range markets is
“stop loss when price returns to the prior level”
is a wonderful strategy, and
I’ve also said this quite a lot in materials and such
but unless you think in market terms, you can’t fully utilize it
It’s not enough to simply follow the strategy
I’ve said this many times in products and the like with added twists
It’s not so much a stop-loss pattern
stop loss is basically acceptable when the price returns
However, when the market shows a strong signal that it won’t revert
you must cut losses before it returns
But since this market itself appears randomly
(when range markets are the only thing occurring and profits feel good, it’s even more likely
and conversely, if such markets come too often, switching to trend-based strategies in advance makes them disappear
in the end, the market reflects the trader’s expectations
keep in mind that what you think, your opponent is also thinking)
While considering various factors, decide when to execute the stop loss
progressing with an added angle makes it troublesome
But in the end
stop loss or holding
trend or range
is a simple binary choice
Even though the nature is simple,
the criteria for judgment is more complex
stop loss is a very important line
what makes it an important line
is the boundary between range-bound markets and trending markets
Therefore
instead of only going after range-bound markets
it’s better to also have a perspective on trending markets
to continue a range-market-specific logic would be advisable
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