Going long is a sequence of disadvantages, but in the end the market is set up so that you surely make money

I think the FX market is the market where trend-following works best

FX is open 24 hours on weekdays with holidays off

Due to that mechanism, trend-following tends to be effective

There are traders who profit from mean-reversion, including scalpers and day traders

If you try to profit from mean-reversion by averaging down, you have to trade like a day trader

As a measure that has become unusable and blocked

There used to be a mean-reversion na-npin (averaging-down) trade for scalping in seconds too

But brokers disliked it and blocked it, so it’s unusable and frequently frozen

Mean-reversion averaging-down day trading is the most versatile and easy to handle

In reality, it can generate profits over and over

On trade ranking sites, traders who consistently make profits are

Most of them using mean-reversion averaging-down strategies

(In fact, when a trending market comes, looking at the records of such traders shows they are wiped out)

However, trend-following will absolutely come in the market

That ordering also relates to how this market is treated as a 24-hour weekday-off market

From the point where mean-reversion day trading has become reliably profitable

A trending market arrives

And a pattern occurs where the trend continues up to just before FX markets actually close

At this time, many mean-reversion day traders suffer

Day traders are also referred to as swing traders

In this situation, they are easily caught

Basically, you need to determine whether to cut losses or not, but

That element of “determining” is often unnecessary

Because that is exactly the position where cutting losses is correct

Purely because their market view has been mean-reversion trading

In such times, being able to cut losses steadily is what allows you to profit reliably from mean-reversion

But in reality, only a handful can do that, so everyone ends up taking big losses here

This becomes the trigger that forms a trending market

Trend-following trades stand out at this time

And as profits continue and the trend extends until it ends,

Trend-following trades can cover markets in which you end up profiting in the end

※ For those who want to keep earning in FX, go here ↓