Discussion : trade trending or mean reversion?? - page 2
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Hi,
I'm new to forex trading and MQL5, I want to open a discussion between these two typical strategies, what are the advantages and disadvantages of each strategy? I'm kind of confused cause I'm new to trading. Advices are welcomed, thanx
Both are valid strategies and both have pros and cons. But it all depends on the current market. Mean reversion is great in a ranging market but you will suffer large drawdowns if a trend emerges. And obviously vice versa, trend strategies will not work in a ranging market.
I may confuse you more and this is indeed most confusing question you will ever ask to yourself and to other traders.
The movement of mean reversion look like trend too to short sighted trader. Like wise, long sighted trader, trend move like mean reversion too.
For example, in this chart it look like there is a trendy movement, right ?
However in big picture, it is just reverting back to where it was.
Many traders are confused in first place about trend and mean reversion. :)
Unfortunately no easy answer on your question.
Kind regards.