I don't do this in continuation patterns. I do it at reversal areas after a large decline or rise. Today's premarket drop was a perfect example. DD on something like a support break or a resistance break would be pure stupidity. I don't trade breakouts -- ever! That's the absolute worst strategy for day trading. I trade extreme price movements per statistical analysis. A consolidation area is not extreme anything so I would use this method for that type of setup.
HELLO - WHERE ARE YOUR STATS ? Don't tell me you don't track them ? Who can believe you without these ?
Oh, I agree. I absolutely agree, you could make alot of money with this as the money management part of your strategy. The thing is, you haven't given us the rest of the strategy, though. What are your triggers? What are your setups? How do you determine your stops? I mean, aren't you leaving out most of what you really need to make the Martingale work? And given a very successful trading method, couldn't you actually make most traditional money management techniques work, except perhaps the all in approach? And doesn't a truly sound money management plan actually help those traders who have only marginally successful trading methods, more than, say, the Martingale would?
A method like this, using multiple accounts and averaging in as the trend moves against, statistically speaking, would probably be very hard to track ... and show a winning percentage. JJ
In plain english, what the OP is saying is that setup A is not very reliable so he takes a small position, if setup A fails, that is actually a signal, a signal that setup B has a very high probability of working, therefore he doubles his size on the 2nd trade. So he is basically betting more when he has better odds. The multiple accounts is just a way to 'segregate' the money in his head, it is more for psychological purposes.
... are you sure that's what he's doing? I think you need an epiphany. He's martingaling his ass off, and because the markets chop back and forth so much, he thinks he has a "very powerful futs strategy", which works until it "blows out", which he has admitted, it already has. JJ P.S. My posts are no way meant to be insulting or deamining to anyone ... but I most defintiely do belive a trader should handle a straetgy like this as if he were defusing a time bomb, because eventually it can go KA BLOOM!
good observation, I think people missed his money management part. There are total stop loss and each trade stop loss. So it is not normal double down but more like DD after getting stop out.
I think you are a smart guy I think you CAN figure system out with stats only I won't underestimate you but keep fishing, OP might
Of course I track them. My win rate on the DD is nearly 100% this year. I have 1 loss and it was a BIG one but the money I made prior to that and after the fact has easily exceeded the day I got butchered.