The Tide Rules

Five sentences. The whole system. The scanner shows you which ones apply today.

1. 1

   Hold only what is above its line.

   If the tide is out, you are out. Cash is a position.

2. 2

   When the line flips, act. Do not argue with it.

   Flips are read on completed candles, so there is no rush and no second-guessing.

3. 3

   In slack water, do nothing new.

   Near the line the next candle can go either way. Wait for the tide to be clearly in or out.

4. 4

   Cap any one position.

   No single asset should be able to ruin your month. Decide the cap before you look at the chart.

5. 5

   Never borrow to hold a trend.

   Leverage turns a normal whipsaw into a forced exit. Buy and hold what is above its line, nothing more.

You will be wrong often. Trend rules lose small amounts in sideways markets — that is the premium you pay for being out before the big drops. The ledger shows both.