The so-called reverse tracking is through the program with the majority of the market traders do SLR direction to make an order.
The PRINCIPLE OF foreign exchange reverse tracking COMES from the “80/20 LAW”, which states that only 20 percent of the people can make a profit, then the remaining 80 percent will lose.
If we can find the big data to analyze the 80 percent of traders to make a single direction and then make a reverse order, then theoretically we can achieve a profit.
However, there are still many variables in using big data to make reverse orders. First of all, traders need to be able to find enough big data, that is, a large number of traders to make orders, which is very difficult. In addition to large securities companies, banks and other financial institutions, ordinary individual traders simply do not have such resources.
Moreover, even if traders have these resources, it is difficult to turn them into a basis for following orders because the data needs to be analyzed, which requires computer algorithmic programs.
Finally, there is a need for documentary procedures that can make timely judgments and trading operations.
(Related recommendation: Can foreign exchange documentary system continue to profit?)
In a word, reverse foreign exchange merchandising is a relatively difficult way to achieve foreign exchange merchandising, which has a high technical threshold and data requirements.
It’s out of reach for the average trader.
However, the average trader should not be too discouraged, because the foreign exchange reverse tracking profit is not as high as expected.
The profitability of FX reverse merchandising also involves many factors such as problems, slip points and margin issues, so the uncertainty is very high.