Which is more stable, contrarian trading or trend following?

Today I will deliver on which is more stable, contrarian or trend-following?

The figure below shows the profit and loss table for the backtest of contrarian and trend-following using 4 of RSI BandsEA's 8 currencies.

The 4 currencies are USDJPY, EURUSD, GBPUSD, GBPJPY.

These 4 currencies are already supported up to v20 for contrarian and v21 for trend-following; the other 4 currencies (EURJPY, USDCAD, AUDUSD, AUDJPY) are currently supported up to v18 with the four logics.

We are specializing in contrarian with v20 and trend-following with v21, leveraging their characteristics to improve performance.

http://livedoor.blogimg.jp/fxmt4indicator/imgs/5/d/5d48fdee.gif

From the table above, the most outstanding performance is from GBPUSD trend-following.


In general, the other currencies are more stable with trend-following, and the 4-currency average win rate is 86% for trend-following versus 79% for contrarian.

However, contrarian trades more often, so total profit is higher.

The figure below is a balance chart for trend-following over the past 5 years and 10 months.


http://livedoor.blogimg.jp/fxmt4indicator/imgs/a/b/abcd3abf.gif


Then why would ongoing operation with EA be more stable for trend-following than contrarian?

When operating with discretionary judgment using indicators, contrarian may be more stable, but when running continuously with an EA, trend-following is presumed to be more stable.


The reason will be carried over to the next section.


This time the test used RSI BandsEA, which currently supports 8 currencies for contrarian scenarios.

http://fxmt4indicator.abproducts.biz/wp/?page_id=1554


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