The Daily Market Forecast... multi beats binary

Friday’s Blog Results: Friday’s Blog Results: The buy was only good for 5.75 pts. Prior level worked for 15.75.        

Quick Tip: Multi beats binary.

Trading one strategy is a binary approach. You win or lose on each trade. Since all trading strategies have their winning streaks and drawdowns, trading one strategy can be difficult to handle psychologically when the losses pile up.

Last week our Volume Profile strategy had a very rough time. The binary trader will blame the war causing a character change in the market. True enough. But knowing the cause of your losses is not enough.

If the cause was you, changing your behavior is the solution. If the cause was out of your control, like the war, all you can do is quit or book losses.

Seasoned traders understand that markets regularly change character. Trading multiple uncorrelated strategies is a balanced approach. Last week, while one strategy we trade was a sizable net loser, the other two overcame the drawdown.

Once you have a winning strategy, go find another.

Today’s Best S&P Futures Turning Points:

Short Level: Sell 4260 stop 4265.25.

Long Level: Buy 4193.50 stop 4187.75Trade well,

Mike Siewruk

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