"Everything becomes FX" Week-to-week trade that no one can tell Vol.011
This "Investment Navigator Plus" is a report delivered every Sunday by the team that considers money management under the philosophy "Everything becomes FX."
I want to share money matters beyond FX markets, including the weekly positions I actually hold, with a limited audience.
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▼ Table of Contents
―1. Latest News
―2. Global Finance
―3. Week-to-Week Trades You Won't Tell Anyone About
―4. Next Week's Positions
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【PR】Turn FX losses into profits using money management
A trading approach that emphasizes "money management," which is often neglected in FX trading.
You can trade without being swayed by win rates or methods.
▼1. Latest News
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The lead article "Everything becomes FX" moves between domestic and overseas locations about half of each month. I want to let you know which city I’m in right now, what I’m seeing, and whom I’ve been meeting and working with domestically.
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I’ll be in Manila again this week as well.
There are more people than you might think who live in both Japan and abroad. When I share such things on blogs or Twitter (which might sound like “high-consciousness”), information naturally gathers.
Because of the nature of “moving locations to live,” few are office workers; many run their own websites or blogs and live off those affiliate earnings.
Also, although in small numbers, there are people who, like me, earn a living by trading in markets such as forex or cryptocurrencies (I don’t rely on that alone, though).
On a very personal note, with the recent surge in cryptocurrency prices, those who say they “made money” may not see the same thing happen again; I recommend using that money to do something else.
The planning of “I made X yen last month, so I’ll make Y next month” is a first step toward bankruptcy.
In any case, the barrier to commuting between Japan and overseas has decreased significantly over the past decade thanks to Internet expansion and the rise of low-cost carriers.
Remember the初心 (beginner’s mindset): one in ten Japanese invest, while others might say, “I’ll give it a try!” It might be interesting to act on that and start soon.
▼2. Global Finance
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Many people who trade FX spend time researching fundamentals and technical analysis.
Yet, ironically, about 90% of FX participants incur losses, and many exit the market.
In this column, I aim to consider global finance while keeping some distance from those topics.
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When browsing Internet news, topics about “stocks” and “cryptocurrencies” appear frequently.
Compared with that, the topic of “foreign exchange” doesn’t seem as prominent. It feels like watching the “futures” whenFX moved substantially in the past.
Stocks, cryptocurrencies, and currencies all have ups and downs, and one can profit from those spreads.
Currently, cryptocurrencies are rising strongly, so riding that wave seems advantageous. However, since it’s unclear when it will crash, you should also prepare an exit strategy.
Now, the main content of this Investment Navigator Plus, the “Week-to-Week Trades You Won't Tell Anyone About,” has a win rate in the 40s, yet this week marks the fourth consecutive win. This doesn’t mean “perfect timing”; it indicates that the win rate is rising, suggesting the period of losses may begin soon.
If losses start in the short term, we should use money management again to weather the drawdown.
In the mid-term, profits have surged at the start of the year and then have lingered in a flat range. The market is unpredictable at any moment, yet it’s also unpredictable what will happen next; it’s a strange creature that experiences regular events.
To stay aligned with that regular wave, I believe it’s essential to trade mechanically with an edge (at least that’s how I’ve approached it).
▼3. Week-to-Week Trades You Won't Tell Anyone About
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A “Week-to-Week Trade You Won’t Tell Anyone About” that fully uses money management in a long/short portfolio.
Since its inception in 2012, it has never lost in a year and has earned total profits of over +30,000 pips.
What is the secret to profitability with a 48% win rate? Here, I’ll share the performance of this week’s trades.
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・This week's result: +257 pips
・Cumulative result: +31,099 pips (rounded)
【Week-to-Week Trade Results】
・Win rate: 48.6%
・Average win: +839.6 pips
・Average loss: -580.1 pips
・Maximum win: +13,491 pips
・Maximum loss: -2,932 pips
・PF: 1.37
・PR: 1.45
“Week-to-Week Trade You Won’t Tell Anyone About” takes positions with an edge from the hourly, daily, and weekly timeframes. However, its essence lies more in money management than in trading itself.
This method has a 48% win rate. Since the perceived probability is around 40%, this is not recommended for those who require a win rate above 80%. It targets those who can think in the long term.
＞＞Overview of the “Week-to-Week Trade You Won’t Tell Anyone About”
