Just trade mechanically
I am a candlestick FX trader.
Recently,"Tendai FX Logic"I received such a review.
"Mechanically"with that title.
Indeed,"Tendai FX Logic"has become something that trades mechanically in a straightforward manner.
Up until now, through Investor Navigator and others, I have explained the importance of analyzing supply and demand,
and the mechanism by which Tendai occurs.
However, perhaps some readers may have found it difficult to understand at times.
This is, however,"Tendai FX Logic",
in terms of when buy/sell signals are issued,
what kind of profits are targeted in the trades,
and I have been explaining it so that you can know that.
However, what you actually do is,
as written in the manual,
you simply trade mechanically and in a steady manner.
Moreover, since you only use candlesticks,
the mastery itself can probably be achieved in about an hour,
making it a very simple thing.
For these reasons,
as the reviewer mentioned,
"mechanically"you just need to trade.
And furthermore, to add,
"Please do not do unnecessary things."
This is especially something I tell experienced traders,
the more experienced you are, the more you try to incorporate what you have learned so far,
and add discretion in your trading.
As a result, more often than not, your performance ends up worse than it should be.
On the contrary, beginners who trade honestly as the manual dictates
tend to achieve profits more smoothly.
So, once you obtain the manual,
please do not overthink things and
trade mechanically above all.
Now, let's actually see what kind of trades these are in practice.
This is a 1-minute chart of gold.
Here is"Tendai FX Logic"traded according to the rules.
If you look at the same timeframe and the same chart,
everyone would obtain similar results.
The blue line represents trades that ended in a loss.
The red line represents trades that reached profit.
And this is the same for everyone,
even beginners will have the same trades.
There is no consideration of environmental awareness or
my own subjective judgments at all.
For those who have already purchased,
on this chart you can confirm whether the trades truly follow the rules.
What is important on this chart is that
I am not making any forecasts.
I simply traded mechanically.
In the blue sections, the market initially moved upward,
I rode along, but
some news came out,
and subsequently it dropped significantly.
Later, when I checked the news,
there were reports of explosions across various parts of Iran,
and crude oil prices were rising sharply at that time.
The Nikkei Stock Average had temporarily fallen.
Because of such timing,
gold also fell temporarily.
However, predicting this news in advance is impossible.
The reasons for the further decline are usually learned later.
What we can do is simply follow the crowd in the direction they move.
So, even if we do not know what happened at that moment,
if the masses shift from buying to selling,
we also change our position from buying to selling.
The important thing is not to cling to your own thoughts forever and
continue to hold a long position.
Always follow the crowd.
And by doing so, simply following the crowd yielded
a loss of about 30 pips initially,
but then a large drop, resulting in about 180 pips of profit.
Next, the crowd shifted further from selling to buying.
I did not think that it would drop more,
or that it would rise only modestly.
When the crowd shifted from selling to buying and I held my position,
I took the same action.
This allowed me to realize profits from the selling position and then switch to buying,
and hold positions until the crowd moved down.
As a result, I was able to obtain even greater profits, about 360 pips.
Indeed, by throwing away my own assumptions and constantly following the market,
I was able to trade in this manner.
As expected, in the subsequent market there was no further upward momentum,
and the market became flat.
Experienced traders may draw lines based on the previous high, like the pink line above,
and use this as a reference for taking profits in that area.
Wouldn’t that be useful?
However, such things do not work at all,
and you can see that the market has risen even more.
Drawing lines is meaningless, no matter how hard you try.
How many people in the world actually trade by looking at those lines?
If you are a minority, you cannot beat the crowd.
By the way, if you look at other timeframes, it looks like this.
The line drawn earlier is only in accordance with the display area and the timeframe you set on your own chart,
basically just where you perceive a peak to be.
Other people would draw lines elsewhere.
People looking at other timeframes would draw them at other prices.
Even by looking at the chart above,
you can see immediately that such lines do not function at all.
Lines are drawn based on individual traders’ subjective judgments.
Not everyone uses the same rules for drawing them.
Furthermore, in FX, most trading is done over-the-counter,
so the price itself differs between brokers.
Naturally, chart shapes also differ.
Therefore, the lines you draw on your chart may not be at the same highs or lows as those drawn by others using different charts.
People who draw lines just like you are a very small minority, or perhaps you are the only one.
Spending effort to draw such lines and using them for trading is meaningless.
What is more important and effective is how you follow the crowd,
which is much more crucial and effective.
How to discard your own thoughts and
consistently follow the majority will always place you in a favorable position.
And this is exactly what makes it possible for beginners to trade mechanically in a system like
"Tendai FX Logic".
Because of this kind of logic, including beginners
often realize profits at an earlier stage, I think.
If you want to trade with a non-discretionary logic, please take a look here.