This article is a review of FuturesTrader71’s paid webinar #4: Daily Homework. The outcomes for this video were to help provide a system to look at the markets and determine your preliminary areas to do business (Create a trading plan), and then an overview of how to execute that plan.
The system that he introduces is basically a top-down approach to the markets:
- Review economic calendar for major news items
- Review the composite profile
- Review the last completed day and create 3 hypothesis: What will I do if the market:
- Opens in range
- Opens above the range
- Opens below the range
- Review overnight action
- Review and adjust hypotheses based on opening price
- Determine opening type, wait for your identified areas and execute your plan
Your reasoning for doing this “homework” is because it gives you something to compare your day’s execution against. Otherwise when you look back at your day’s trades, how will you know that you executed your trades based on your system or just emotionally? You can record this in your daily journal to see if you are trading emotionally, or if your plan is working or not.
A great piece of advice he gives is to play back the most recent session in high speed which will give you a feel for the order flow and key areas of the day.
After this, he walks you through this system for a complete day and how he would analyze it. There are some great pieces of information here like how he analyzes the composite profile, micro-profile and daily profiles and how he would identify the areas he would do business. There is a lot more to it than what he can explain, but it gives a good place to get started.
A few times he said “I would expect it to go here” but didn’t really explain why he thought that way. It felt a bit like he was explaining things as a trader, but not as a teacher who is really conscious and aware of his students and makes sure everyone has the foundation to understand what he says.
But I still found this video to be very useful. I really enjoyed him going through his system and then going through a complete day. I wished he had gone through an additional 2 or 3 days to really hammer home some concepts, but still it was very well done and I would definitely recommend it.