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I think you are missing the point, obviously stocks can go up and then they come down. But the whole point of trend following is that once the trend finishes you get out. So in my example if TER reversed I would get out, obviously I'm not going to get the top but it don't need to make a profit. But you are unlikely to lose on a trade that you are up over 200% in, that was my point. Unless it crashes 70% in a day or something like that.Similar to the chart A2M below, did this trade catch the absolute bottom to peak, no, but that is not the point. Once the trend reverses I don't even look at the chart. (This is a hypothetical trade I did not trade it)[ATTACH=full]142512[/ATTACH]
I think you are missing the point, obviously stocks can go up and then they come down. But the whole point of trend following is that once the trend finishes you get out. So in my example if TER reversed I would get out, obviously I'm not going to get the top but it don't need to make a profit. But you are unlikely to lose on a trade that you are up over 200% in, that was my point. Unless it crashes 70% in a day or something like that.
Similar to the chart A2M below, did this trade catch the absolute bottom to peak, no, but that is not the point. Once the trend reverses I don't even look at the chart. (This is a hypothetical trade I did not trade it)
[ATTACH=full]142512[/ATTACH]
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