The market ultimately cannot be outrun by momentum, so contrarian trading ends up being disadvantageous

Long positions against the trend are entirely suited for short-term markets

They are effective in range-bound markets

However, once a trending market arrives, they fall into an entirely unfavorable state

This resembles a form of martingale, etc.

Even martingale seems stable as long as a losing streak doesn’t come

leading to the mistaken impression of winning,

but once the losing streak accumulates, the reality becomes clear

Because it says the upcoming reality is that the market will put the opposite-bias in a disadvantageous state

Thus a trend-following approach becomes the more appropriate trading strategy

Of course I have no intention of denying contrarian trading altogether,

but if your contrarian measures are inadequate

then that only hints that trend-following is the area where you are most proficient

Naturally it requires mental fortitude,

and those who were heavily losing with contrarian trading

are now accustomed to trend-following and continually increasing their positions

you realize that trend-following trades are a completely reliable winning strategy

What you must not misunderstand is

that you cannot win from the start

They will not grow unless a trend market appears,

but when a trend market arrives, you end up increasing capital at that time

* For those who want to keep earning from FX, click here ↓