Forex Trading involves a degree of almost Supreme Complexity. What traders want is profits, not headaches. Since the 1970s people have worked to automate the whole entire process by using advanced strategies and techniques combined into a simple automated easy to use Expert Advisor.
Trading the old way has always been to “buy low, and sell high” taking advantage of big upward or downward trends. This works if you’re lucky, but the reality is that markets only trend 20% of the time…at best. The other 80% of the time they are moving ‘sideways’ meaning the market trades within a narrow range and over long periods of time sees a very small net change. This steady “opportunity cost” ends up destroying most traders.
Professionals, the ones who have been living off investor’s retirements and security for decades know a number of variations of the “85/15 rule.” Eighty-five per cent of the time, the sideways motion of the markets just eats up whatever profit potential is there.
Consequently, traders who follow trends when making their investment decisions will tend to perform poorly during a
sideways market…85% of the time.
There are ways to graph this seemingly Supreme complexity, using complex algorithms to identify these sideways movements and tell them apart from the 15% that will be actual rise/decline. By charting, software can recognize when the price is unusually high or low and automatically signal that is to time to generate profit off the rapidly changing price as price retraces to normal level, and begins sideways action again.
This action, which is only 15% of any market’s activity, is where 85% of all profits are made.
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