It all depends on the range of the market, your instrument and price action.....a& Most importantly YOUR Anticipation of the price movement. If i see big fat candles "which" i call fist pumping, i do not average up rather, hit the hammer max out.... If I see a slow creep, I would rather stick with the initial position.
I thought I remembered reading somewhere about how the Turtles method no long worked because of some change in market structure or something. But I'm sort of familiar with the story, wasn't it a breakout-buying system? And it was entirely mechanical and the people that lost money did so because they couldn't follow the rules?
See, I dunno. I've heard it argued that those big tall candles mean the trend is ending because they form when the herd jumps onto the trend, and the herd loses money. Of course, that rule is broken probably as often as it is true.
Nothing lasts forever. For a price, I could show you a moderate risk, high reward system that worked well (6 figures) in '08 and '09 but isn't worth squat now. Edges can be fleeting. Sooooo, what do you think worthless is worth now??
Market i flexible and so should you be...!!! the theory that you heard (I have never heard it) to me sounds irrational. (no disrespect intended to you or who brought it to your attention). Candles are mere representation of PRICE movement constraint in a time FRAME. you change the time frame your theory will vanish. One big tall candle can be broken into 20 small candles and viceversa. What gives is if you SEE price moving UP/DOWN ...FAST (KEY)... you can rely on tht action as it represents participation. SOme times it Depends which part of the TREND this happens.... ONSET or mature stage... When this happens on the onset... you risk and reward gets + as you can stick the stop closer... Hope this helps
Yes, it was a breakout system. Could be that the specific entry parameters they used (e.g., break of highest high of last 20 days or whatever) no longer work, but the general principle of adding to winners should still work if it ever did. That said, it would be tough psychologically to trade this way. A lot of your winning trades would end up stopping out for breakeven or a small loss. The only way this could be profitable overall is if the trader had the intestinal fortitude to keep trading after a string of losses, which would be difficult. That might explain why some of the turtles did better than others.
Medium term trend follower here... I add whenever one component of my system looks for oversold conditions in the short term that go against the main trend. I add on those situation