Why the Quad always wins

What's often overlooked is that it's not given to make money just because one knows where the market goes. Actually, I think most trading errors come from that belief since the ego says: "hey, this is going up," and one thinks, I have to make money right now but does all the wrong actions to attempt as such and is left losing money.

Instead, the only thing a trader needs to do is look for low-risk entry points and exploit them by adding our Quad exit strategy.

The Quad strategy always wins, and here is why:

We constantly examine the worst-case scenario first. That is not because we are "glass half full" attitude motivated but because the market plays Archillies foot is in risk, and our approach assures that risk is at bay.

Worst case scenario is trading against the market trend:

The following chart shows fading price, long entries (white circles), in a downward market (linear regression channel), and yet due to the action-reaction principle and the quad exit taking early 50% profits (green arrow up) with immediate breakeven stop placement on the rest of the position.

In other words, even when you find yourself on the wrong side of the market, you still have an excellent chance to make some profits or at least not massively hurt yourself.

(In addition, we use the "daily call" as a prefilter for the upcoming trading session to reduce risk even further not to find yourself in a trend against you)

The next chart is one of a sideways range. Price oscillation is what happens most of the time and offers low-risk entry points at double tops (yellow circles)for shorting and double bottoms (white circles)for going long the market.

In this case, depending on the size of the range, target points for financing and the first target can be the mid of the range (red horizontal line) or the range extremes. Runners are held until they get stopped out or until the range breaks, where runners can find themselves in trends producing substantial additional profits.

In the last chart, we get the best of all worlds. Price is trending, and we are entering into a directional market in the direction of the trend.

Hitrates increase, and the second target and runner exits substantially increase in profit size.

In addition, multiple runners get established and can turn into risk-free substantial profit position sizes.

In other words, this is a self-regulated way of pyramiding into a trending market without the typical pyramiding risk.

While the average investor tries to determine market direction and struggles with "being right" and pleasing the ego, our approach as market contrarians dominantly focus on low-risk entry points and immediately reduces risk by taking profits on the action/ reaction principle.

Alleviating the stressful task for the mind to overcome the unsolvable tasks to predict the future by trying to identify where prices might be heading allows for an execution psychology conducive to executing trades and the ability to perceive the market correctly.