Can system trading win?
I have been continuing to write in order to clear everyone’s "misunderstandings" for several weeks now,
Did your image of profitable trading differ from reality?
Was what you thought would guarantee profits denied?
I will continue a little longer, so if you’re interested please read on m(_ _"m)
This time『System Trading』about.
I’ve mentioned before that many products are full of the notion of “When the indicator does this…”, and this time I plan to delve into that area.
Many products are「combinations of indicators」.
Why is that?
「Because displaying indicators does not reflect the user’s level」so.
Regardless of professional or amateur, anyone can easily display the same thing with a single click.
Therefore, if you say something that sounds plausible, anything can be explained away. lol
And the people who buy products are the 'amateurs.'
Amateurs know that they do not have trading skills themselves.
But…『I want to be lazy!!!』『I want to make money easily!!!』
Everyone probably has a desire to earn money with little effort.
So they rely on indicators that are easy to display.
Not only rely, but they even fall into a tendency to depend on indicators for everything in trading!!
? is the sign tool of a certain product. (Note: I’m not denying this product)
I drew blue lines where the arrows appeared; what do you think?
Ohhh, in the middle it seems like there’s a big tendency to win! (lol)
Where the arrows appear and there’s a strong move, you’ll probably win.
Bringing out such points,
“See, you could have captured XX pips, right?”
“If it’s XX currency, it’s XX thousand yen!”
“If it’s XXX currency, it’s XXX thousand yen!”
That’s how such advertisements read.
If you post about ten such charts, most amateurs will believe it, right?
I have a friend who collects products, and this product looks like it could win!; he’s now asking for this and that next. lol
(※ He often asks me to verify it for him lol)
Now, about the sign tool I mentioned earlier.
Here, I’ll clear up one misconception amateurs have.
「At what timing does the arrow appear?」
In reality, depending on when the sign appears before the right side is visible,
will it be profitable or a loss?
It changes a lot, doesn’t it?
For example, the green arrow second from the right.
From the chart above, it seems you could have profited, or exited at break-even.
But in reality the arrow appears one bar later, or two bars later…
(The exact timing depends on the product logic)
It is never the case that the sign appears at the exact moment the candle with the arrow appears or the Heikin-Ashi starts!!!
So?
The arrow appears around the yellow vertical line.
As I’ve said many times,
Indicators are lagging indicators.
Indicators are confirmed after the rate is determined.
In other words…
① The candle completes.
② The indicator completes.
③ The sign appears.
Therefore,you cannot catch the tops and bottoms just by the indicator’s sign confirmation!!!
So system trading is…
① If a trend starts, you can take profits.
② In range markets, you will keep losing.
Especially during trend reversals.
Trend reversals are basically‘pointed hat’ formations.
It looks like this.
Why does it become a‘pointed hat’points? Here’s a simple explanation…
(Note: I’ll use Elliott Wave terminology in the explanation; if you don’t know it, please skip?)
The final phase of a trend is the impulso waves (think of them as the trend’s waves).
And the first wave of the reversal is also an impulse wave (these are waves of the opposite trend).
Thereforeit becomes尖.
Sometimes analysts describe it as a trapezoid like “decline → flat → rise,” but even though from a larger perspective it may not look completely wrong, that’s a misunderstanding.
Even if it looks flat, there is a turning point, and there, large or small, it issharp.
For example, like a “?” shape.
After that you may experience drawdown… and if you can hold on, you can say “See, it’s winning!” lol
If a large reversal occurs on the right side when you don’t know what’s coming, can you hold on?
【Conclusion】
If the market continues in a trend over months or years, you may earn throughout the year.
But if it’s a range that lasts for months or years, you’ll likely keep losing.
Markets are said to be 30% trending and 70% in ranges.
I have not researched the exact proportions, so I can’t confirm their accuracy, but trends are shorter in time.
In trend markets versus range markets, trend markets are shorter in duration.
However, if you manage to ride a trend, you can make large gains.
Thinking about it that way, the result is…on average, profits tend to settle near breakevenso I believe.
A friend who collects products tells me
“They’re all the same; you can’t win anyway.”
and yet he keeps buying them, somehow (laugh)
If indicators do this…
people who think that way won’t see any change in their future trading results unless they shift their perspective.
And I often see people relentlessly chasing for undiscovered parameters or indicator combinations for years, thinking there might be something out there, but
‘If such thing existed, someone smarter would have discovered it by now!’
Besides, in this era, computers would have discovered it using vast data!’
That’s why.
So for someone just starting out in trading, you won’t discover such things.
「Using独自 own parameters…」
This kind of thing is the same.
Indicator can be used regardless of how many parameters there are.
In short, it’s about how you use and think about it.
For example, moving averages.
With parameters 20, 21, 22, 23, 24, 25…
If you’re using this range, frankly any of them will do.
Only a matter of faster or slower response.
There is no requirement that this parameter must be used!
If using a certain parameter yielded the best profits in the past,
will it be the same in the future?
This is calledcurve fitting, right?
The market does not move the same way in the past and future.
Therefore there is no single correct answer, you know?
If right now
① you’re wondering how to set the parameters?
② you’re looking for combinations of indicators.
③ you’re relying on sign tools or products.
If any of these apply, your trading improvement may not come in the future.
If you happen to make money,“It just happened to match the market.”so it won’t last long.
I will continue to share information that helps you earn in the future, but
“There is no such thing as an easy way to earn money.”so please don’t expect that kind of thing lol
But the reason I have been able to make profits for over 10 years is sprinkled throughout this blog.
Surely it will provide hints and inspiration for readers.
Even though the core message is the same, the way it’s said can change how it’s understood.
As in the usual golf analogy…
・Rotate the hips
・Rotate the chest
・Body turn
In the end, you’re saying the same thing.
But everyone has their own phrase that feels right to them.
To earn in trading, you need a tougher, more challenging path than in other professions.
Never forget that only those who persevere will have a path to profits!
That’s all for now.
Thank you for reading to the end. m(_ _"m)
※ I’m grateful for your kind words as always.
Thank you very much.
Below is the paid section, but please note that there is no article in the paid portion?
A few people have asked to offer thanks, so I’ve prepared this.
To those who purchased, thank you very much?