Registered: Apr 2005
10-23-12 05:18 AM
Quote from oldtime:
it aint that funny. I have a trend system that constantly adds to winners (never had the guts to trade it with real money.)
It's amazing the kind of money you can make if you get on the right side of a trend.
That's how Livermoore traded. That bet sizing technique is a real edge. He would "test" the market with one position, and as it went in his favor, continue to scale in. That way, when you're wrong, you're wrong for a penny. Right, right for a pound. That style requires a decent trending market, tho. But ya, it's worth it. I think the real key is just being able to 1) identify a trend and 2) enter on pullbacks. Pyramiding can and does work. Think about all these hedge funds. They HAVE to pyramid. The liquidity doesn't exist for them to enter full position on the bid or offer. They have to scale in and out. Catch the big waves and and pyramid up and down.