BNF Trading Strategy Presentation

Introduction

• Topic: Overview of BNF trading strategy
• BNF: Takashi Kotegawa, Japanese trader
• Transformed $15,000 into over $300,000 trading stocks in Japan
• Presentation duration: Approximately 20 minutes
• Source of information: Japaneco (Portuguese channel)
• Importance of understanding the strategy before implementing it

Key Concepts

• Counter Trend Trading:
  • Takashi believes counter-trend trading is safer than trend-following strategies.
  • Many traders lose money, hence counter-trending can be advantageous if done correctly.
• Day Trading Strategy:
  • Each trade lasts a maximum of 2-3 days.
  • Examples of trades: opening on Monday and closing on Tuesday (1 night, 2 days).

Types of Traders

• Identifying Trader Types:
  • Takashi identified six types of traders based on their actions.
  • Type A: Long-term investors (open positions for extended periods).
  • Type B: Traders who buy on retracements.
  • Type C & D: Traders who expect trends to continue and buy at peaks.
  • Trader Types A and B are more likely to profit.

Strategy Overview

• Goal:
  • Control risks and achieve high-probability trades.
• Key Indicators Used:
  1. Kyrie Tsu (Kyrie Relative Index)
     • Measures distance between price and moving average.
  2. Volume:
     • Helps assess if a trend may change.
  3. Bollinger Bands:
     • Although often ineffective, can support the analysis of price movements.
  4. RSI (Relative Strength Index):
     • Used to identify divergences, not just overbought or oversold conditions.

Trade Execution

• High-Probability Trades:
  • Focus on small losses and potential for big wins.
  • Analyze conditions when Kyrie is high to enter short positions.
  • Close trades immediately when the market moves against your entry.
• Example Trades:
  • Tesla Case Study:
    • Trade examples demonstrating the use of Kyrie and RSI indicators.
    • Emphasis on recognizing market patterns and gaps before entering trades.

Market Analysis

• Real-Life Examples:
  • Analyzing Tesla stock over one year using TradingView.
  • Identify potential trades by monitoring key indicators for signals to short or go long.
  • Importance of adapting strategy based on market conditions and historical data.

Conclusion

• Final Thoughts:
  • Aim to be on the opposite side of the market; most traders lose money.
  • Encouragement to apply the strategy and backtest it on charts.
  • Call to action: Like and subscribe for more content and strategies.

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• Reminder:
  • Ensure to understand all aspects of the strategy before implementing it.