As forex traders, you may be looking for a successful trading strategy. Strategies that seem to work successfully will start falling over time. However, However, it is pointless trying to fix the flaws of the strategy by exploring about its mathematical or technical aspects.
Some strategies will fail over time, even if you apply them correctly under all circumstances. Some strategies act in the opposite way by telling the flaws of the trader and act like an insurance policy. So, it makes sense that you learn about the exposure spectrum, which is based on the work of the mathematician Nassim Nocholas Taleb.
You have the quality of being fragile on end of the spectrum. On the other end, you have the quality of being anti-fragile. In the middle, you have the robust quality. In trading context, a fragile system is easily affected by chaos and randomness. A robust system is indifferent to chaos and randomness. However, an anti-fragile system takes advantage of chaos and randomness.
Examples of fragile system include moving average crossovers, using too many indicators, etc. Examples of robust system include fractal flow strategy, market maker strategy, and Newtonian trading strategy. An anti-fragile strategy makes use of the chaotic nature of the market. However, traders must realize that the so-called holy grail for the markets do not really exist.
It is worth exploring the fractal flow strategy. It is based on fractal candles, which are anti-fragile in nature, and benefits from the flaw of the system, and it also encompassed inside a robust strategy. Hence, when you look for a successful strategy for you to work out in the long-term, it is worth exploring the anti-fragile part of the exposure spectrum.