The daily call
We try as humans to figure things out, make sense, and, most of all, gain control over things. We made calendars and other approaches to get a hold of time and merely touch the surface of how complex mechanisms work. The tighter we try to squeeze, the more we get jaded.
Our approach toward the market is the same and leaves us, yet one more time unsuccessful the more we try to squeeze everything into a small box.
Yet, with a bit more generosity, there are ways to up your game.
The daily call is one such tool and, like a weather report, can help you be prepared for what might come in your upcoming training session for the next day.
It serves mainly as a guide on what "Not" to do the next day to avoid losing streaks.
While we provide this daily feature to our followers, we stand for independence and freedom and, as such, offer to teach you how to make your own daily call.
Outside market hours (or if you trade a 24-hour market shortly before the rollover of the daily session with the data feed severed), examine your daily chart in a neutral fashion for each of your typical edges under which you have built your trading system individually and rate it (see chart below as an example):
Make sure you integrate as tools:
one that measures volatility(oscillator),
one that measures trend (indicator),
a statistical tool that reveals price behavior distance from the mean
a tool that relates to time
and a tool that measures transactional relevance
in other words, an array of tools that look at market behavior from different perspectives.
Make sure not to create a bias after a few questions are answered to not subconsciously favor an outcome for the next day but rather mechanically answer each question after a brief observation independently from other questions previously examined.
The goal is to get a statistical probability of the highest likelihood of what the market might do for the upcoming day:
The outcome of your assessment mainly results in strict instructions on what"NOT" to do for the following day:
These instructions are essential for your behavior the next day since intuitively reading the market is futile since markets are counterintuitive in principle.
But that is not all. While most traders meet the market with a set of tools that they project upon the market, like a definition of a breakout trade and alike, the daily trader who uses the daily call looks at the market instead from a perspective of what it is not.
In this fashion, you are not a victim of the blue car syndrome (= you buy a blue car, and now you recognize ten times more blue cars in traffic than before your purchase = seeing breakout trade opportunities where there are none.
A daily call trader will rather face a situation of elimination where the markets show him the highest probability play than a "hoped for fata morgana."
The first step of this process is to take the instruction seriously of "what not to do."
If, for example, the daily call rules for the highest probability of a "sideways to down day," the consequential instructions are not to take any long trades. With this precursor for the next day, multiple benefits are achieved.
First and foremost, a sequence of multiple losing trades is avoided. Secondly, the trader can leave all tools for long trades at home, reducing his/her scanning time in half and, as such, meeting the market with twice as much focus for a more extended period.
The format of a brief article doesn't allow us to point out all beneficial principles the daily call holds true but rest assured, in conjunction with the quad exit, these two tool sets have managed to outperform most common trading systems by far. We will, over time, gladly share all the intricacies of the details of those tools and their application.