[Method Logic] A logic that avoids volatile markets and reduces losses is the key to maintaining profits

【Method Logic】A logic that avoids a volatile market and reduces losses is the key to leaving profit behind

Statements from overseas professional traders
“There are three directions in the market: up, down, and sideways
In a sideways market that accounts for about 80% of the entire period, trend-following methods do not work, so you should refrain from entries as much as possible and ride through with minimal losses.”

What is important about this statement is

In a sideways market that accounts for 80%,
trade as little as possible
or,
keep losses as small as possible
as much as possible

A sideways market, in most cases, is a state of low volatility

My method is to ride the flow and momentum, in other words, to follow a small trend, but
a trend-following method that rides the flow and momentum does not work in sideways, low-volatility markets


Therefore, in such non-volatile markets, the logic must be built not to trade

Before I arrived at my current method, I tried every possible method,
but there were very few methods specialized in avoiding volatility, in avoiding non-volatile markets

There are many forms of trend-following methods that ride the flow and momentum,
but those that work in avoiding non-volatile markets were often sloppy
The paradox is obvious

In the past, I spent a lot of money buying FX information products, looking for “inside information” methods online, learning over 200 methods and testing them

Since I don’t use these now, one could say it was a wasteful effort, but
it wasn’t just wasteful; it had meaning

I bought methods that should have won but didn’t work at all
and I constantly wondered, “What is missing?”

Then I met a professional trader mentor, and from the mentor’s method, I could see what I had been missing
Because I felt “something was missing,” I gained great insight and now I’m here

There is not a single wasted moment in life
Though it may seem like a detour, it wasn’t really

To return to the point, one major realization was
the logic to avoid risk in non-volatile markets
this was the missing piece


With trend-following methods, when a trend lasts long, you can win a lot

However, accurately judging the start of a trend is difficult

From a situation with no flow or momentum and low volatility
it is hard to capture the moment it starts moving

If you enter thinking a flow will emerge and it doesn’t, you’ll hit a stop
That happens often

In FX information products, this pattern was common

Additionally, accurately judging the end of a trend is difficult

From a situation with flow and momentum,
the moment momentum wanes, stagnates, or reverses is hard to catch

If you think “okay, I’ll still enter,” but the flow reverses and you incur a stop
This also happens

This pattern was common in FX information product methods

In other words, you think momentum has appeared, but it hasn’t, and you take a loss
If you think momentum will continue, but it doesn’t, and you take a loss

No method can sense everything
Also, there are situations where a loss is unavoidable,

If there were a logic that could avoid beginning and ending of trends to some extent…
that is, if losses could be reduced compared to general trend-following methods…

Increasing wins is important, but
if losses can be reduced, that naturally increases the win rate

The key to leaving profits is also in such aspects

In my mentor and my method,
we build a logic to determine the presence or absence of volatility
Of course, it is not 100% accurate, but I pride myself on its high accuracy

What I have written up to here
is something you would surely come to realize if you actually traded

FX information products show how unreal their realism often is…

A method aligned with real trading is what professionals use


★★Supplementary explanatory PDF clarifying settlement methods added (4/16)★★
What is the currently released “New Life FX Method”
Aiming for 1,000,000 yen per month with 1 day + 10 pips of trading (2–5 hours a day)
Pro trader’s 1-minute FX method explained with smartphone chart images

Two methods from professional traders (mentors) were combined to take the good parts,
・Added a logic that clarifies entry points!
・Added explanations clarifying settlement methods

■ Overseas professional traders’ thinking (legendary investors Buffett and Soros)
A trading method not for “winning” but for “earning”
Trade only with the expectation of “going long where the odds are high”