Contrarian averaging down is stable, but in the long run, trend-following is more stable
The outward appearance is that mean-reversion averaging is stable
But if you think from both sides
Eventually, a trending market is formed
Each time contrarian trades generate profits
The more the market continues
the more it will eventually yield a trending market
This is the iron rule of FX — you can understand it by looking at past markets
The importance of trending markets
Can be proven instantly by looking at FX past markets
After that, you just need to get used to this
Ultimately, the market favors trend following
In the short term, you will face defeats
In the long term, you will achieve victories; this loop continues
In the end, only by viewing a long-term timescale can trend-following succeed
If you trade trend-following with a mindset that you cannot succeed, it will not last
Therefore, there needs to be a will to continue trend-following
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