If you try to counter-trend accurately in a ranging market, you tend to lose more easily

Mechanical market judgments rarely produce a range market

It’s at a level where you might say it’s a noisy market, building small trend conditions

And then the trend breaks and returns

If you were doing reverse averaging (grid) at this time, you could increase your position

If you think about reverse averaging in a precise range market

If a trend market forms, it will trigger stop losses, so you can’t profit from reverse averaging

If you don’t cut losses, reverse averaging won’t work

If you always follow the market filters, you’ll incur many stop losses

A poverty of stop losses leads to losing with reverse averaging

Even with mechanical market judgments

That is stop losses based on grasping the overall market

Because the market has ups and downs, utilizing that requires

To precisely determine a range market and avoid losses from reverse averaging makes you more prone to losses

Reverse averaging thrives on ambiguity

By constantly observing the market and judging its strength to cut losses, reverse averaging can yield profits

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