Genuinely can't tell if you realize we're pretty much agreeing. I already conceded it's best for just about everyone to stay away from that type of strategy. Doesn't change the fact I've seen someone create a strategy, made a living out of it and did it consistently for over 6 years. Again, it's just one person. That's why I stated and agree it's best to stay away from it. Maybe it was pure luck he got away with it. You made an absolute statement and I was simply telling you what I've seen. If you don't believe me, if 6 years isn't long enough in your mind or whatever other reason, that's fine nothing I can do about that.
That's fine. I think the right way to trade is to find a signal, strategy or edge that you can repeat over and over with a clear and precise plan that you have the mental fortitude to follow that allows you to prosper and get what you want out of trading. If you're telling me that there's no strategy and no person in the world that adds to losers and has made a successful long term career out of trading, than fair enough. Not here to try and convince you.
You can try to convince me. I'm always willing to listen. Who would that trader be? Because I sure don't know of one(1).
Adding to losers is a good way to break even but that's not really the point of trading. When I have a good winner in a consistent and energetic trend I just keep pyramiding it. The new pyramid trade is at (for a long) Entry plus r, where r is the distance to the stop-loss: then I move the stop on the earlier trade(s) to the last Entry minus r. So your total financial risk on the position comprising any number of trades never exceeds r. If you can pyramid like this a few times, the net result will be a gain, though some will not go that far. The Turtles used to pyramid at Entry plus 0.25r. That's a bit aggressive for me.
2nd position at a better price does give me a Exit at BE option, if I feel the trend has turned against me and lower is expected then I'll aim to take the BE option and possibly flip sides. I have 2 entries with trend method, 1 of my 2nd entries today on NQ ran 30pts with a 6 SL. So yes averaging down can work, but it needs to be in your plan and not it's gone against me, average down, further more and more, you never want to go against the trend on any trade, that should be the rule, I won't add a 2nd position if the trends turned against me at that point.
I can't point you to him, he doesn't post on these forums. It isn't even really worth debating, I mainly agree it isn't a good approach. I am just simply stating I traded with a guy for a long time and one of his main things was adding to losers and I watched him day in and day out do it successfully. In the end pretty irrelevant, so I'd rather not try to convince you. I don't think it benefits either of us even if I did.
Almost everyone of these chat rooms teach it, for one guy that's his whole strategy, but he has one rule, max 4 adds.
The good thing about not adding the losers is that when the stop jumps it gives you time to think and rethink if maybe you were wrong. It is important to have good habits. If you have the bad habit of adding losers, eventually one day you get caught up in a trade that goes against you because you don't have the habit of exiting. In the end, trading is like life, if you have bad habits you will finally pay dearly. By adding the losers many times a bad trade becomes a successful trade but in the end you realize that it is better to fail more but to have good habits.