If a trend market in FX lasts longer, a momentum (going-with-the-trend) strategy becomes advantageous, and if a ranging market lasts longer, it can serve as a trigger for the trend market to continue for a longer period afterward
Why trend-following is advantageous in trending markets
Because it is beneficial whether the market is ranging or trending
it always provides benefits
First, considering the favorable direction
when a trend appears, profits extend
and if it is a genuine trend that lasts longer
the longer it lasts, the more profits can be extended and realized
this is extremely significant
in contrast, profit expansion and take-profit were unlikely to be large with counter-trend strategies, which makes this very substantial
and looking at the disadvantages
it is still a ranging market; in a range, trend-following does not profit
even if you force a trend-following trading style to make profits, it won't work well
it becomes oddly curve-fitted, causing you to miss the profits from trend-following anyway
In ranging markets, accept that you will lose
but this is like a form of profit
the longer the ranging market lasts
the more the subsequent trend will extend; this has been a trick from the past to the present
this is why trend-following is called the holy grail
the longer the ranging market lasts
counter-trend traders become brainwashed
because they keep winning
they think, "it will come back again"
and that belief continues indefinitely
strangely enough, it continues endlessly
by simply doing trend-following trades, you can accumulate plenty of profits
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