If you don’t adopt a method that goes with the trend from before a trend market starts in FX, you won’t be able to efficiently increase (your gains).
When you trade with trend-following in FX, you’ll understand that
until a genuine trending market appears, you will be “losing continuously.”
It can be quite mentally exhausting.
However, continuing with trend-following until the trending market appears is a merit that can be leveraged as it unfolds.
Because when the trending market finally arrives, you can gain a substantial advantage.
What you should be careful about at that time is the idea of trend filters in trend-following, among other things.
Indeed, adding filters to chase only the trending market is a wonderful idea, but
in reality, markets are alive and move with the trader’s expectations, so
you can be outmaneuvered by such trading strategies.
In other words, instead of increasing trend-following profits by adding a trend filter,
adding a trend filter may reduce the profits from trend-following
and as a result, capital increases may fail.
In reality, no one can know whether a trend market will succeed or not, after all,
so what’s actually needed is to consistently implement the opposite trades of contrarian traders.
Because you must be acting as the inverse indicator of losing traders.
Therefore, you should simply strive to follow trend-following.
Trend-following will certainly prove powerful when a trending market appears,
so it’s better to thoroughly understand the mechanics of capital increase and weave it into your trading method.
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