If a trend market continues for a long time in FX, a momentum (follow-the-trend) market becomes advantageous, and if a range market continues for a long time, it can become the trigger for the trend market to continue for a long period afterward
Why trend-following in a trending market is advantageous
Because it benefits you whether the market is ranging or trending
It is always advantageous
First, considering the direction that yields benefits
When a trending market appears, profits extend
And if the trending market is a genuine long-lasting trend
the longer it lasts, the more profits can grow and be realized
This is extremely significant
In a reversal strategy, you wouldn’t have been able to grow profits as much; the profit realization is enormous
And regarding the drawbacks
It is the ranging market again. In a range, trend-following cannot profit
Even if you try to adapt your trend-following style to make profits, it won’t work
It becomes overfitted in a strange way, and you end up missing the profits from trend-following
In a range market, you admit defeat
But this is like a form of profit
Because the longer the range persists
the future trend that follows will inevitably extend. This is a trick that has been used from the past to the present
This is why trend-following is called the holy grail
The longer the range persists
reversal traders are being brainwashed
they think they can keep winning
and say, “It will come back again”
and that belief persists
Remarkably, it continues for a long time
by simply doing trend-following trades, you can accumulate many advantages and profits
※For those who want to keep earning in FX, see below↓
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