If you’re going to do a stop-loss trade, absolutely aim for profitability potential

Common sense suggests

If you are going to do a stop-loss trade, the profit ratio must be

1:1 is not worth trading at all

1:2 also stands out as lacking value

If the market eventually moves in that direction

simply making the initial 1:0 as 1:1 greatly amplifies profits

Also, basically the market

forms a narrow range

forms a noisy range

and therefore

logics like 1:2 must be executed many times to keep the number of successful attempts high, otherwise profits won’t remain

However, trades that only follow the direction

are essentially “profit from the potential for expansion,” so

if it expands, that amount becomes profit

Also, scalping is fundamentally unsuitable for stop-loss trades

because noise tends to occur

If the holding period is long, stop-loss trading is the only option

because you set losses to a minimum and wait for the subsequent trend to generate profits

If the holding period is short, only averaging in (Nampin) trades are viable

Slope changes are meaningful only in stop-loss trades, and

since a move is about shifting the direction held

stop-loss trading has meaning because it is a holding-logic,

in other words it is trading aimed at the trend or direction

You must not change stop-loss to a smaller loss

Only when losses are small can profits be created

Conversely, stop-loss trades that do not set small losses have no meaning

Otherwise, manual loss-cutting with a single-shot or a nap could yield higher profit margins

Stop-loss is based on a profit-rate logic

To achieve profit rate, holding is fundamental

Therefore, an appropriate market logic requires a faithful reaction to moving averages

At this time, while the market generates noise,

it moves in response to moving averages

Ultimately, the envelopes are simply useful

Moreover, simply setting two envelopes of close and far widths makes it easier to trade according to market conditions

Stop-loss hunting too

If you know the concept of profit rate and holding,

you can avoid stop-loss hunting

Rather than being hunted by stop-loss,

the discussion is about reducing the number of trades with a “holding perspective, profit-rate perspective, and directional logic”

Long-term direction

1-hour and 4-hour charts

Mid-term direction

15-minute, 30-minute, 1-hour charts

If the 1-hour chart is involved in a mid-term direction

there is also the possibility of a trend reversal

Following the trend and chasing reversals only leads to losses

Counter-trend averaging out ends at the timing

Basically, one should focus on “keeping up with the market trend.”

That is what the envelope is for

Consider that the width and angle of the staircase change

Trade only the long-term directional trend

Because you get fooled, the number of losses increases

Support the long-term directional trend

Basically, mid-term trading is

not suitable for stop-loss trades

and suited to a averaging-in (nampin) trading logic

It makes sense because you repeatedly apply both the long-term trend in one direction and the counter direction

Stop-loss trades in the mid-term would be self-defeating

In this FX world, it’s always the same

Only chase big trends or resort to reversals

Reversals collapse quickly, and counter-trading is better

In the end

It becomes clear that only following big trends and occasional reversals work

Skillfully target trends and perform contrarian trades

Stop-loss trades relentlessly against big trends

Temporary top/bottom reversals

That’s all

Because big-trend markets never break

In the end

The central line is the MA

It moves while deviating from the central line

It’s simply a matter of whether you trust the envelope’s direction or not

MACD is only a supplemental reference to the central line

The final judgement is the deviation from the MA

With only a single MA line, the movement is twisted and hard to handle

With the envelope, there is a line attached to the deviation, making it easier to follow

Stop-loss

Follow the big-trend market

Trade without stop-loss

Trade using the envelope concept

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