Here's one on NQ. The first started the same way, long, exit w/stop, a DD then average a little lower. Oh....I can't wait to here the bashing because I averaged. Before you do that this trade was based on a support level in a different time frame. There is a method to my madness, and a nice profit was the result.
My trading account is getting pretty fat for not knowing what I'm doing. I must be one extremely lucky guy. I'm up over 700% in about 4 months on this account and I'm doing it consistently. It's not luck and I DO know what I'm doing.
Here is another one....this is the v-bottom, double bottom with a lower low, triple bottom I was referring to earlier. I didn't take the V or the double because I was working NQ at the time but I took the triple for, yet, another profit. And I don't know what I'm doing?
Here is another trade for 4 more points. I'm pretty good at picking tops as well. This is a perfect example of an extreme price movement but I won't tell you how I measure that. All this coming from someone who doesn't know what he is doing?
But it takes all kinds in this world, and if you want to keep toting this horn, go right ahead ... just don't call it a very powerful fut's strategy.----------->>>> It's a very powerful fut's trading strategy, in the right hands. It's a strategy traders use when they don't know what they're doing.---------->>>> refer to real-time, verifiable trades posted earlier. Jimmy Jam
So if the first trade works, do you still DD the next trade or you just simply reset the trade counter to zero.
It depends on the type of setup. Once I book a profit I usually go back to a small lot. However, if I take a profit on something like a double bottom with a lower low and a triple bottom with a lower low appear - a higher probability trade than the previous profit - I will stay a little more aggressive but not a DD. I will probably go the same size as the last trade. Another thing to keep in mind, I've never gone over 50% of my margin power. For example, if I have 100k in the acct I've never gone over 50k. I keep a lot of money in my account simply for insurance reasons. I'm fully aware of the risk involved so I need that comfort zone. And a final thought....is a long trade more risky after a 15 point fall or before? Obviously when the market has fallen 15 points the risk of going long decreases. I agree with you ahead of time, a 15 point decline can easily turn into a 35 point decline, which is why stops are always so important.
I was doing this a couple of years back with the s&p...like in 1990. Reversed the losses and doubled up on the contracts (1-2-4-8-10-10). If you cant snag a pretty hefty winning trade by your 4th or 5th trade, and assuming you start with 1 contract on the es, you can be in deep shit ($3,500+) by your 5th trade. If you hit more winning trades than losing trades then do the anti...puts alot of cash in your pocket and puts your profit at risk not your cap. If you can manage to string 6-7 losses together in your day to day trading...forget about this because you will get killed. Oh yea, my circuit breaker in the late 80's worked great. I was so proud of myself when I would quit trading after losing $500.