[Free Gift Available] About SAKU's Trading Method
Hello! I'm SAKU!
Currently, the articles under update mainly focus on the basics of technical analysis to build a foundation, but I thought there might be people curious about the trading methods I actually use when trading, so I’ll summarize them briefly in this article!
At the end of the article, I also have a freely available e-book prepared for you!
The Overall Picture of Trading
・Trading Style
It is entirely discretionary trading.
I mainly trade with a feel of about day to swing.
There are times when it ends up being scalping, but I don’t start with the intention of scalping from the beginning.
In a swing, I usually don’t look at anything below the 1-hour chart.
In a day trade, I usually don’t look below the 5-minute chart (5-minute charts are rare; basically 15-minute charts or higher).
・Foundational Theory
The bases for analysis such as market cycles mainly rely on Dow Theory and Wyckoff Method concepts.
Also, from an MMS (Market Microstructure) perspective, I consider the internal market structure and supply-demand balance.
・Environmental Recognition
Whether the trend is advancing or in a consolidation phase is mainly judged by the high/low progression in Dow Theory terms.
Also, from a MTF (Multi-Time-Frame) perspective, I perform environment recognition across multiple timeframes.
For each timeframe’s trend and the strength of price waves (momentum and volatility), I judge them by combining lines, price action, and volume (Tick volume).
・Setup Recognition
The recognition of setups (entry points) is also determined by integrating lines, price action, and volume. For day trades, I also use VWAP.
I consider them comprehensively to determine whether I can enter.
・Trigger Recognition
Once the setup is in place, the actual trigger (entry) is carried out by price action on the candlestick.
I decide whether to enter at market or place a stop order to trigger the entry according to the candlestick.
Capital Management & Position Management
・Stop-Loss
Stop-loss is determined by combining lines, price action, and volume, and placed around the point where “if broken, the original entry rationale collapses.”“If this breaks, the whole entry premise collapses.”I also place stops at that level.
If the price movement seems dubious, I also cut losses at market.
・Take Profit
As for taking profits, I set a reasonable target at entry (minimum risk-reward assumed), but I don’t often place take-profit orders in advance there.
The reason is that I want to maximize gains as much as possible.
Therefore I often use partial take profits and trailing stops.
Sometimes I take profits at market if price action looks dubious, just like with stop-loss.
If there’s a chance while the position is being extended, I may add more size.
・Lot Size
The lot size I enter is calculated by considering the acceptable risk to the account based on the stop-loss width.
Background to Establishing the Trading Method
For now, this is how it’s settled, but there were countless twists and turns before I could establish this trading style.
I studied Elliott Wave Theory, Gann, Dinapoli methods, the Turtle Traders, and even researched line analysis including Gann lines and Andrew Pitchforks.
I don’t use many indicators now besides Tick Volume for volume, but I do study moving averages, as well as Stochastic, RSI, Bollinger Bands, and MACD — not only their formulas but how their price movements relate to interpretations.
These are not directly used now, but I believe they influence my discretionary judgment to some extent.
I’ve read over 100 books on trading, domestic and international combined (about 80% seem not useful, though).
I also read papers and white papers from research institutions and funds.
For overseas works without translations, I translated them myself because there wasn’t convenient AI translation back then — it was really tough…
And by constantly testing, thinking, losing, reflecting, and practicing, I’ve managed to settle into my current form.
I believe most of the trading mistakes you’ve made, I’ve made as well; beginners’ future mistakes, I’ve probably made too.
Nevertheless I’ve kept going without getting discouraged, and I’ve managed to live, at least for now, surviving.
Summary
As discussed, my method combines multiple analysis methods and perspectives.
If you’d like to try similar trading or would like to study each analysis in detail,
・Foundations of Technical Analysis → learned through the series of articles
・MTF (Multi-Time-Frame) & Line Analysis
→MTF: The Key to Multi-Time-Frame Analysis
・MMS (Market Microstructure), Candlestick Price Action, Volume Analysis
→MMS Trading Encyclopedia
covers them in detail.
The e-books I publish don’t just introduce methods or how to do them; I place great emphasis on the fundamental mechanisms and the question of “why it happens.”
By understanding from the foundation of the methods, I’m confident you can acquire a systematic and high-reproducibility trading approach.
Of course, I also explain in detail about stop-loss, take-profit, capital/position management, and discretionary judgment.
If you’re interested, please take a look.
・Free Gift
【MTF Analysis Essentials (Free Version / about 60 pages)】
・For day to swing traders
・For beginners to intermediate
・Line trading method using multiple timeframes
Available here ↓
【MMS Trading Encyclopedia (Free Version / about 40 pages)】
・For day traders
・For intermediate to advanced
・A method to ride large-volume strategies based on the ideas of MMS (Market Microstructure) such as candlestick price action and volume analysis
Available here ↓