[The days you continued to lose cannot be undone] Conditions to revert the quantity to its original amount

On the night after four straight misses, I was pounding on a calculator.

If the next entry is double, it all comes back in one go. That’s the calculation.

...No, this is really bad.

I pulled back the numbers I had entered, myself.

What was scary was that the calculation itself was correct, you know.

I’m going to write exactly what I decided that night.

What I decided was not how to reduce, but how to restore.

Good evening!

I’m Masashi^^

What I stopped this time was adjusting by quantity after a string of losses.

Instead, I decided to write the condition for restoring the reduced quantity beforehand.

The condition does not include wins, losses, or the amount.

Since applying this rule, the biggest scar within a month has become the shallowest.

Starting with a talk about pulling back myself after hitting four consecutive losses。

✅ On the calculator, the reasoning was sound

The numbers that appeared that night were not wrong.

They simply showed the amount needed to recover what had been lost.

Because the calculation was correct, I almost felt convinced for a while.

What tripped me up was that I calculated assuming the next hit would come.

Right after four misses, there was no reason to think the next one would hit.

Moreover, the me who missed four times was not in a normal state.

I was anxious, and my checks were sloppy.

At the time when my judgment was at its lowest, I was trying to enter the largest amount at once.

Writing it down, it seems obvious, but at the moment I couldn’t see it.

Because my state isn’t shown on the calculator screen.

When only the amounts line up, it can look like the logic is working.

That’s why from this day, I removed judging amounts from the calculator.

✅ At the time when my judgment was at its lowest, I was about to enter the largest amount。

The calculator doesn’t display my state. Only the amounts remain visible.

? The side of reducing was decided quickly

I think many people reduce after a losing streak.

I also could decide this fairly early.

I drew a line for the number of consecutive misses and then lowered it by one step.

I leave this line: [Consecutive losses reach the line / thus reduce quantity by one step from now on].

How many times to reduce, and how far to reduce, depends on the size of the account.

My level-cutting method is put in the chapter on money management in the教材, so I won’t go into it here.

During an era when judgment was slipping, keep your hands small.

This was easy to continue because the reasoning was easy to understand.

The problem was after the reduction.

I had never decided when to restore it.

What happens if you don’t decide?

On a good-feeling day, you’ll restore it by feel.

And when you feel good is usually right after you’ve taken a large gain once.

? I had a rule to reduce, but I hadn’t decided a rule to restore。

If you haven’t decided, you end up restoring by feel on a good day.

? Restoring after one win was the most dangerous

So, what should be the criterion?

To start with the conclusion: at least not after the very last single trade.

It seems natural that you restore after one gain.

It feels like a sign that your momentum has returned.

But the result of one trade can be produced easily by market conditions.

Whether your checks have returned or not has nothing to do with it.

In fact, the month I suffered my biggest hit followed this pattern.

Lower once, take one gain, then continue losing, then lower again.

As the rise and fall continued, losses concentrated only when big moves happened.

When totaled, the meaning of reducing had completely disappeared.

Looking back at this period still feels a bit unpleasant.

? A single result can be due to market conditions. It is not proof that your checks have returned。

If you oscillate, big losses can still concentrate when the market is favorable.

? Do not include wins/losses in the restoring condition

Currently, there are only two conditions in use.

First, a sequence that passes all the decided steps continued for the predetermined number of times.

Second, during those five instances, there were zero occurrences that exceeded the allowed amount.

Neither condition looks at wins or losses.

What is checked is whether my state has returned to normal.

【Passed rounds: reached the predetermined count / Exceeding allowance: 0 / thus restore by one step】

I’ve written how many times I perform this in the chapter on money management, so I won’t repeat it here.

The number of times varies with account size and frequency of entries.

And even when these conditions are met, you don’t restore all at once to the original level.

Restore one step and then recount the same number from there.

This may seem roundabout. Indeed, it is.

But big scars only formed when you tried to restore quickly.

So now I plan to take about two weeks to restore.

? Do not include wins and losses in the restoring condition. Look at whether your state has returned。

Example: 【Passed rounds: reached the predetermined count / Exceeding allowance: 0 / thus restore by one step】

? How to use by marking on paper

I don’t count in my head.

I place a sheet of paper on my desk and mark a notch for each successful pass.

If a pass doesn’t occur, I reset to zero then.

When the marked number reaches the predetermined count, I restore by one step for the first time.

This looks plain, but it worked.

Even when you want to enter big when there are two marks, the paper catches your eye.

With mental counting, you’ll conveniently end up with about three marks.

People’s memory tends to tilt toward being kinder to themselves.

Also, it can be pretty regrettable when the marks reset to zero.

When it collapsed after reaching four, I couldn’t help but exclaim.

That regret makes me check the next round more carefully.

The good thing is that regret is directed toward thoroughness, not toward trying to recover it.

? When counting in your head, it tends to increase advantageously. People’s memory tilts toward being kinder to themselves。

Example: 【Marks: 4 / Then collapse next time to zero / Quantity remains the same】

⚠ If the decline continues, take a break for a while

There’s one more rule I follow.

If after lowering by one step, losses still continue, I will not rely on quantity but on days.

Specifically, I will leave two or three days completely open.

Usually, if the trend continues, the market’s character has changed.

It means I’ve entered a period where my pattern doesn’t fit.

There isn’t much point in continuing to enter small positions during a period that doesn’t fit.

Even if they’re small, the quality of checks will not improve.

Also, small entries tend to loosen one’s vigilance and make the steps sloppy.

Therefore, I choose to stop temporarily and step away.

The first time I return, I start with the smallest quantity.

⚠ If the decline continues, shift to days instead of quantity。

Stop condition: If after two steps down the losses still continue. I will open two to three days entirely.

? Why I added the money-management for drawdown later

There is a Gold special remedy section that covers drawdown protection money-management.

It wasn’t in the first edition. I added that chapter later.

The reason I added it is that questions concentrated here.

Where it belongs is explained once you read the main text.

But I hadn’t written what to do after a miss.

As a result, I received many questions asking what to do.

When the same question gathers, there’s a flaw in the book.

So I added one more chapter and wrote the money-management parts separately.

I’ve also applied the same approach to dealing with mental states.

This isn’t about grit; it’s about the procedure to return after a collapse.

Today’s content is the very first part of that.

? When the same questions keep coming up, there’s a hole in the book。

Contents: Drawdown protection money-management / How to manage funds / How to handle mental states

⭕ If this decision-making doesn’t fit you

Finally, I’ll also describe what to do if it doesn’t fit you.

If you always trade with the same quantity each time, you don’t need this discussion.

There’s no need for a restoration condition since you aren’t reducing or increasing.

Also, it won’t suit those who want to recover big after losses.

This method is designed to slow down the speed of recovery on purpose.

The教材 also isn’t something where numbers move the next day after you finish reading it.

Carrying out the predetermined number of steps is harder than you’d think.

It isn’t something that can promise future profits.

First, try writing down when you intend to restore the reduced quantity.

If you can’t write it down, that means it isn’t decided.

An undecided state is almost the same as restoring on feeling.

⭕ This method is designed to slow down the speed of recovery on purpose。

Which people it isn’t for: those who trade with the same quantity every time, those who want to recover a lot after losses

? Summary: Write restoring criteria equal to the reducing criteria

The calculation that appeared on the night of four straight losses assumed the next hit would come.

I was trying to enter the largest amount when my judgment was at its lowest.

So now I write the restoring criteria on paper first. The actual rule is 【Passed rounds: reached the predetermined count / Exceeding allowance: 0 / thus restore by one step】.

The key to watching is not wins or losses, but how many times you could pass the decided steps in a row. A single result can come from market conditions too.

I count on paper. In my head, memory tends to tilt toward being kinder to myself.

I added a chapter later to include drawdown protection money-management. It won’t change results the day after reading it, and it won’t promise future profits either.

If you haven’t decided when to restore the reduced quantity, try starting from 【Passed rounds: reached the predetermined count / Exceeding allowance: 0 / thus restore by one step】 in a single line ^^

?See details of GOLD Special Remedy

Thank you always for reading ^^