Most losing traders use contrarian (mean-reversion) strategies; they pursue trend-following strategies with higher but unstable profit margins rather than stable daily returns.
Most losing traders use mean reversion.
It's the same on trading ranking sites or anything else.
It tends to feel like an absolute value effect.
Even those who favor trend-following trades
want to use reversal averaging when a trending market stops appearing entirely
Basically, the FX market tends to be driven by ideas like “mean reversion averaging is correct” or “you’ll profit if you use mean reversion averaging.”
Markets tend to push toward those kinds of traps.
Therefore, simply following trends mindlessly will overwhelmingly lead to profits in the end.
Because as a result of putting in hard thought
a trading strategy that assesses market quality and then uses mean reversion averaging
is more skilful.
Certainly you would applaud as if that were a perfect solution.
But the majority of people cannot handle mean reversion averaging effectively.
They cannot cut losses with mean reversion averaging when the trend moves far away.
And even if they cut losses later, profits don’t continue.
So, if you simply shift to following trends
and get used to it, you can continue to profit
and survive.
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