Being precise about attempting a counter-trend trade in a ranging market makes you more likely to lose
Mechanical market judgment rarely yields a range market
There are times when it’s better to call it a noise market, building a small trend market
And then the trend breaks and comes back
If you were scaling in with counter-trend averaging during this time, you could increase your position
If you consider counter-trend averaging in a truly range market
when a trend forms and you incur losses, you can’t profit from counter-trend averaging
If you don’t cut losses, counter-trend won’t work
If you always follow the market’s filters, you’ll accumulate many losses
A life of losing money on stop-outs will cause counter-trend to lose
From a mechanical market judgment
That is a stop-loss made with an overall grasp of the market
Because markets have ups and downs, and to leverage that
The more precisely you judge a range market and try to avoid losses with counter-trend, the more you tend to lose
Counter-trend averaging can extend profits when there is ambiguity
By constantly monitoring the market and making stop-loss decisions based on market strength, counter-trend averaging can yield profits
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