Anyone here into Averaging Optimization & Martingale/Kelley Variation Models applied to Index Futures hedging? Is there an optimal way to position size your shorts to protect profits already made by your long trades? I was just wondering can these models be modified in a long/short position sizing hedge? i.e. Spread scalping or even swing trade averaging... on the same contract for example, YM,NQ,ER2,ES with Diff accts? and must be adaptive (optimization varies from time/position size to time/position size) The Ormond System: Negative progression, a variation of the Martingale System. Assumes you will win before you reach the house limit and can bankroll the losing run. Bet an initial amount (N). For each win, on the next bet N again. For each lose bet N*x+N where x is the number of losing bets. Thus if you finally win, you will recover all bet money, plus N for every loss. The progression would look like this on a $5 table. 5, 15, 35, 75, 155, 315, etc. As with all negative progressions, and this one even more so, it requires more capital and is employed to force a winning outcome following a losing streak. Anti-martingale System: Positive progression. Remarks: pre-decide a win, say 7 units Bet on red. if win leave the two on red (or switch to black if you feel like it). If win again leave the four on another even chance. If win the third in a row skim the seven and restart with one. Every time you lose restart with one.