Compress the previous twelve lessons, Wyckoff, the seven steps, and the sentiment gate into “six steps and one red line.”

Assess the tide only once per day

• Rising tide: price above MA20 and MA20 trending up → longs only, no shorts

• Ebb tide: price below MA20 and MA20 trending down → shorts only, no longs

• Flat tide: MA20 is flat → no trading, just keep a journal

Multi-timeframe: use the daily chart to determine direction, the 4H chart to read structure, and the 1H chart to find entries. Conflicting timeframes = no trade.

Wait for just two types of signals (replacing all complex precursors)

• Long: during a rising tide, price pulls back to MA20/structural support, volume contracts, a reversal candle appears, then volume expands on an engulfing candle → enter

• Short: during an ebb tide, a rebound runs into resistance, with rising volume but stalled price, a long upper wick, or a break below the previous low → enter

Keep only four Wyckoff terms: Spring (false-breakdown accumulation), SOS (breakout confirmation), UT (false-breakout distribution), and SOW (breakdown into a major decline). Ignore the rest.

Use just one formula for position sizing

• Amount you can lose per trade = futures subaccount equity × R

• Small account/training phase: R = 1% (at 100U, you can use 3% during the transition); once experienced, 1%–1.5%; never above 2%

• Position size (contracts) = amount you can lose per trade ÷ (entry price − stop-loss price)

• Leverage is an outcome, not a goal; normally use 1–5x for BTC/ETH and 2–3x for SOL; 10x on altcoins/meme coins or with your entire account is strictly forbidden

Five-second checklist before entering a trade

1. Is the market tide aligned with the direction? If not, don’t trade

2. Is it a major coin? If not, don’t trade it

3. Is there a structural pullback/rebound? If not, don’t trade

4. Have you written down the stop-loss price? If not, don’t enter

5. Rate your emotional state from 1–10; if ≥7 or ≤3, don’t enter

While in a position, only adjust the “taillight trailing stop”

• After entering, place the stop-loss at the structural level

• After the first favorable candle, move the stop-loss to breakeven (protect yourself)

• At 1R profit: close 30%

• At 2R profit: close another 30%

• Remaining 40%: trail using the “previous valid low (long) / high (short)”; exit if hit—don’t try to guess the top or bottom

• Principle: let profits run and keep losses small; taking all profits after a small gain destroys your risk-reward ratio

Staying out and circuit breakers (more important than signals)

• No signal, flat market, or chaotic weekend conditions → stay out

• Daily loss ≥3%–5% of account → close all positions and lock trading for 24 hours

• Two consecutive losses on a single trade → stop for the day

• Monthly drawdown ≥10% → paper trade only for the rest of the month

• If you lose control emotionally or want to “win it back” → stop immediately and handle it using the boat-repair procedure

One red-line rule

Stay away from small-cap meme coins like VANA/BONK/MOVR/GTC/BTW and Lobster; never go all-in, move stop-losses, average down, or borrow money to trade futures. Break any one rule and stop training for three days to write a review.

III. Minimalist principles for stocks and futures (combined)

• Don’t predict; wait for structure. Don’t chase rallies; wait for a pullback. Don’t catch falling knives; wait for strength to return.

• Decide how much you can lose before thinking about how much you can make; keep R and the stop-loss fixed, and use a trailing stop for taking profits.

• Use just one strategy and trade only within one pool of assets; act as if you don’t see any other opportunities.

• Spend more time out of the market than in it; repeating 100 simple trades is more useful than learning 100 strategies.

Follow this system: use “market tide + structure + R + taillight” for futures, and “strength + pullback + exit on breakdown” for stocks. Both use the same mindset: wait, accept small losses, let winners run, and don’t try to win losses back.

$FIL (Short-term market coin for mid-month; remember to set the stop-loss on the 15th $)