This educational post shows how exploiting trends can deliver profits in the long term, by living for the big trends. This is a no-targets system that uses the ATR. Trend switches define entry positions and the markets decide exit positions. Scaling-in of position sizes is an advanced higher risk technique. Those lacking experience and with small account sizes should stay far from it.
Trading is not easy. If it was then everybody would be doing it and making millions. About 80 to 90% of all traders consistently lose money. Shocking but true.
Even in showing a purely mathematical system, there are unseen limitations in the backdrop. What's that? The key defining limitation is 'YOU' and your individual psychology. Risk - or the sense of risk - how 'you' manage that, is mostly about psychology.
Even when mathematical reality becomes unarguable, there is still the psychological issue about 'being convinced'. Not everybody is convinced by what is exquisitely mathematical.
Please note that I've only used a 60 min time frame on one chart for illustrative purposes. This is not a tutorial. The skill involved in anticipating where trend switches are more likely to occur is not something I can teach or intend to teach (even for a fee). I do not accept fees and never make any offers of deals to anybody - that's my 'mathematical constant'.
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