Risk Control

It is, in principle, futile trying to predict highs or lows in a market and trying to catch those random future events with even the most sophisticated systems.

No one can predict the future, and as such, instead of trying to find a solution to an unsolvable puzzle, it is a much more fruitful event to try instead to focus on how to catch a low-risk entry point which allows for an excellent chance to produce desired results on minimal exposure risk.

An essential part of such extraction of low-risk entry points is being prepared in many aspects and properly establishing a system that points towards such low-risk entry points in the market.

Measuring one's performance towards one's system and constantly monitoring a strategy for its validity are just two of many processes that need to be monitored.

The process sequence provides for conditioning counterintuitive valuable behavior in the markets to execute correctly and limiting data to a manageable size for the actual execution moments to arrive prepared and with focused confidence when prices reach predetermined low-risk points in the market.

Examples of prepping sequence:

Scanning Sequence

1.) Yesterday’s Call:

2.) Actual Call (actual market behavior)

3.) Evaluation (Was I right? Wrong? Close enough?}:

4.) Check actual trades taken (W/L/BE):

5.) Check system trades (see #2): (log them in excel sheet & write down W/L/BE):

6.) Compare 4.) and 5.) - Did I underperform, outperform, or match the system?:

7.) Did my actual call protect me as compared to the system call? :

8.) Daily Call Evaluation for tomorrow: (fill out the Daily Call sheet & write down the call):

9.) What are my consequential entry rules (E.g.., trade setups):

10.) Scan for possible trade setups and prep five numbers (entry/stop/fin/1st target/2nd target) prior to entry: