Contrarian averaging down is stable, but in the long run, trend-following is more stable
The outward appearance suggests that averaging down is stable
But if you think about it from both sides
Ultimately, a trending market will form
Each time a contrarian trade turns profitable
The more that market continues
In the end, a momentum (following the trend) market will emerge
This is the iron rule of FX; it can be understood by looking at past markets
The importance of a trending market
Can be proven immediately by looking at past FX markets
So you just need to get used to this
Ultimately, the market tends to favor following the trend
In the short term, you may have to endure defeats
But in the long run, you achieve victory; this loop continues
In the end, only by viewing the long-term horizon can following the trend succeed
If you trade with the belief that you cannot succeed, you will not continue
Therefore, you need the resolve to keep following the trend
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