• Traders develop ‘muscle memory’ for a particular style of trading by associating positive outcomes (profitable trades/equity growth) with a trading style.
  • When a strategy pays it reinforces behaviour encouraging repetition of the same actions/trading style.
  • Range traders sell range highs and buy range lows whilst momentum traders buy new highs and sell new lows.
  • Range traders are punished during momentum cycles far greater then momentum traders during a range cycle.