Profit and loss for July: +1,704,720 yen, +1,663 pips (monthly maximum profit updated)



Forward testing using the Brake Out Method Domonat, which started from May, has updated the maximum monthly profit. Details of the trade are below↓↓↓

Technique used →https://www.gogojungle.co.jp/tools/ebooks/52241

Profit and loss: +1,704,720 yen, +1,663 pips

PF: 6.1

RR: 1.3

Win rate: 81.1%

Total trades: 37

To be honest, looking only at the profit gained, it might seem like a fake or scam product…
Recently, market volatility has been high, so considering the trading volume, the figures are quite realistic. To dispel such suspicions, I would like to examine the Brake Out Method Domonat from various angles.【Brake Out Method Domonat】 we will examine.

In investing, money management is important, so based on July data, consider how much trading is possible. Since the average savings of people in their early 20s just starting work is said to be around 1,000,000 yen, let’s start trading with 1,000,000 yen as the principal.

If you consider domestic securities accounts, the maximum leverage is 25x.
The required margin to trade 1,000 units is roughly 4,000–8,000 yen, with a median of 6,000 yen.

If trading 100,000 units, the average loss per trade is about 50,000 yen, so with 1,000,000 yen, the loss per position per trade would be about 5%. If you take 5 positions, the loss percentage would be large at 25%, so you should aim for about 5% loss with 5 positions. In other words, you should keep losses to about 10,000 yen per position.

With a 1,000,000 yen capital and considering win rate 81.1% and RR 1.3, even with a maximum risk of 5%, a safe operation is possible. This safety is calculated based on the break-even probability (Balsa) of bankruptcy (to be explained in a future article).

If you also apply the same one-fifth rule to the trading quantity, the trading quantity becomes 20,000 units. In July, the maximum number of positions was 5, so the total exposure would be 20,000 × 5 = 100,000 units.

Since 1,000 units require 6,000 yen in margin, 100,000 units trades would require 600,000 yen in margin.

If you use 1,000,000 yen and allocate 600,000 yen as margin with 5% risk, July’s results would be one-fifth of the profits, so 1,700,000 yen ÷ 5 = 340,000 yen profit would occur.

It’s 340,000 yen, so for a typical person in their 20s it would be equivalent to about two months’ salary. Even if you purchase this product, it seems to leave you with a good amount of profit (*´ω｀*).
With the Bank of Japan raising policy rates and entering a historic turning point, large volatility is expected to continue. In that sense, profits from this method can still be expected, and in the future I do not think it is far off to trade 100,000 units per position as I have shown.

We are currently assuming 5 positions at all times, so the risk may be overstated in the calculation. Also, the risk was set at 5%, but if you limit to high-yield or high-volatility currencies, or raise the risk, profits are expected to increase.

Postscript: After accurately calculating Balsa’s bankruptcy probability, it turned out that it is safe to take about 10–20% risk on the total performance of this method, so I believe the trading quantity can be increased a little more.

～～～～～～～～～↓↓↓Characteristics of this method↓↓↓～～～～～～～～～

① By viewing a certain indicator from a perspective different from the original method, visually and easily locate the signs of a breakout. It is entirely based on an original concept and is not described in any literature.

② Not just in a simple range market, but can also adapt to trending markets, so the number of trades is vastly higher than typical breakout methods. It is a day-to-swing style method, yet there is a track record of about 75 trades in 2 months.

③There is an environment recognition method that strongly supports breakout strategies. A profitable breakout method does not simply identify a range. By performing environment recognition that suits the breakout method, you can avoid downsides and leverage the benefits.

④ When you find a breakout sign, simply install the original EA and the entry to exit is completed automatically without watching the chart. If you think you can trade using limit orders without watching the chart, be careful—breakout false signals can trap you!

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Thank you for reading until the end.
I hope this is helpful to everyone.
Technique used →https://www.gogojungle.co.jp/tools/ebooks/52241