A Story About Saving Twice As Much by Avoiding Wasted Entries
Hello, I am a candlestick FX trader.
This time, let's avoid unnecessary entries!
That is what I would like to discuss.
Many people think,
“I don’t need you to tell me that at this point, I already know it ヽ( ´￢`)ノ”
“You say that by narrowing down entries and avoiding unnecessary losses, the results will improve, right..”
that’s what you probably think (sweat).
But,being able to cut out unnecessary entries can double your profit!
I think no one would claim otherwise.
No, two times is a conservative figure,
depending on the method, it can be three or even four times as different.
Today, I would like to talk about this.
Now I will explain with concrete numbers.
Suppose there is a method where you gain 12,000 yen when you win, and lose 10,000 yen when you lose.
And suppose a person has a 50% win rate.
Then, simply calculating for 10 trades,
12,000 yen × 5 wins = 60,000 yen
-10,000 yen × 5 losses = -50,000 yen
Total: 10,000 yen profit
Now, if this person can cut out unnecessary entries and improve the win rate by 10% to 60%,
the win rate becomes 60%.
Then,
12,000 yen × 6 wins = 72,000 yen
-10,000 yen × 4 losses = -40,000 yen
Total = 32,000 yen profit
Profit increases to 3.2 times just by raising win rate from 50% to 60%, without changing the method at all!
Doesn’t that surprise you?
Avoiding unnecessary entries or
narrowing down entries is important, I know,
but I thought it would have only a small impact on overall performance.
Didn’t you think so?
However, in reality, profits can differ by as much as three times.
So what about the reverse?
If the win rate drops to 40%…
12,000 yen × 4 wins = 48,000 yen
-10,000 yen × 6 losses = -60,000 yen
Total: -12,000 yen
It becomes a loss...
If you had been avoiding unnecessary entries,
profits could have stayed positive,
but by making unnecessary entries and reducing win rate,
the balance ended up negative.
The performance when win rate is 40% vs 60% is vastly different.
This is why avoiding unnecessary entries and
narrowing entries is important.
In fact, the impact on performance can be that large.
Of course, the difference depends greatly on the method used.
What did you think?
If you have been neglecting to stop unnecessary entries or
narrowing entries down,
take this opportunity to compare it with your own method,
and review whether you are making unnecessary entries,
and you may find that rather than changing your method,
you can turn a negative balance into a positive one.
The "Candlestick FX Logic" not only has a high win rate, but
by limiting the trading times and periods,
it becomes a rule that further increases win rate.
On days not suitable for trading,
no matter how hard you trade,
you will only increase unnecessary entries,
decrease your win rate, and risk reducing your funds.
Rather, trade efficiently,
and by consistently trading with high win rate,
you will be more likely to retain profit.