Kunai talks about a breakout, says［Takashi Kunai Musashi］
There are quite a few methods that work well
Hirano Tomoyuki and Investment School, and us at FX Kouryaku.com have teamed up to operate a course called "Tomoyuki Hirano's FX Trade Master Program," an investment education course. I, as the person in charge of that course, have had a valuable opportunity to learn Hirano's methods together with the members.
Several methods are explained in the course, and one of them resonated with me very strongly. Yes, that’s the breakout-type method.
I’m sorry, but the details of the method are limited to members. The idea is very orthodox: buy when the price makes a new high in an uptrend, and sell when it makes a new low.
Since starting to practice this method in late November last year… it has been going well. As of January 13, there have been 24 trades, 16 wins and 8 losses, yielding 290 pips. Hehe.
Trading should be booked as much as possible
My preference is to book as many trades as possible. I believe human emotions and gut feelings are basically unreliable, so if you can pre-set buy/sell, that’s the best.
Even in situations where you might feel emotionally locked in by take-profit or stop-loss, if you have pre-set limit orders or stop orders, they execute automatically without you feeling anything.
However, for pullback buying or retracement selling, you can automate the exit with OCO orders, but you cannot automate the entry. In an uptrend, temporary dips are pullbacks, but you don’t know how far they’ll pull back until that moment.
In contrast, with breakouts where you enter on new highs/lows, since highs and lows are known in advance, you can automate new entries. For a part-time trader like me who usually works, this is huge because you don’t need to watch the market continuously for timing.
Also, with breakouts, exits can be automated with OCO orders. So this trade involves placing all orders as limit orders.
Trend continuation = clarity of entry
It’s not about which is better between pullback buying, retracement selling, and breakouts; breakout is my favorite because the entry criteria are clear.
A breakout of a high in an upmove can be interpreted as a continuation of the trend, so the condition for entry is trend continuation.
Pullbacks or retracements mean that only when the price reverses can we say the trend continues. If the price falls straight from a pullback point, that’s the initial movement when the uptrend turns into a downtrend.
Indeed, there is a risk of buying at the peak or selling at the bottom, as a trade-off.
In the end, I’ve come to realize that you need to use both methods. In fast-rising markets like Trump-era surges, there may be no noticeable pullbacks, and in more gently undulating markets, taking positions on pullbacks can yield bigger profits.
Having more tools is better, so becoming conscious of both has been a recent gain for me.
Also, I’ve realized the importance of aggregating performance by method. Until now I counted on one account with mixed approaches, so I couldn’t tell what was winning. You don’t notice these basics unless you feel them; it doesn’t become a habit. Study every day.
Note: This article has been added and edited from content published in the Fuji Mountain Magazine Service's FX Kouryaku.com editor’s note for readers of FX攻略.com.
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Musashi Shinouchi (Musashi Shounouchi) Profile
CEO of TCL Co., Ltd. He has been on the editorial team since FX攻略.com was launched in 2008, involved in the operation of the magazine and the official site. In addition to interviews and article writing, he also trades FX as a daily activity. Favorite technical indicator: Heikin-Ashi; favorite method: breakout.
Official site：TCL Co., Ltd.
