Stratagy is the most important part of averaging down. While It might not be good for trend followers, for reversion to the mean trades it is almostr a neccesity. I couldn't make a penny without averaging down.
Here I go. I am averaging down my russel short for the 6th day in a row. Oh why won't the koreans just blow something up? Geez, what's a guy gotta do to get a little bad news around here? Albert
The risk happens when the SPREAD of averages for both sides(winning and losing) of the same product YM using different accounts widens to a level your margin cannot contain it even though your total funds remains steady .
Albert Tell us when you blow you account or when you down to your last $250 bucks...This be a good signal for me to go short lol..