Cool! Hey, are you in and out of all trades if there's no quick move in your favor, or do you average down?
thanks, i do average down, and every trade will move in my favor eventually if there is a temporary short-lived trend against me, as i use reversion to mean strategy in extreme zones. btw today i had one accidental losing trade which is second losing trade so far. when i tried to put an exit order for a 3 lots at .83, it transmitted as .03 due to a sudden price change which i didn't notice, this caused a $300 loss rather than $300 profit. but this loss got covered in next three trades with $200 more.
Hey Dejavu8, How would you determine your "uncle point" when averaging down? Intuitively, I love the concept of averaging down; however, it has proven to be a TICKING TIMEBOMB for many traders. Furthermore, it requires a very high win rate, due to the negative risk:reward skew it creates. Just my thoughts... Walt
thanks, i only average down at extreme zones which is defined by my strategy system, the win rate of this strategy is determined by statistical concept, which is theoretically higher than 99.5%. i have verified this strategy through thousands trades on trading ETF in past. it works great in CL so far with hundreds trades. the only two losing trades were not from this strategy but from my operation failure
in other words, you ain't seen a $10 or $15 single session trend move. yet. good luck when crude breaks the next big trend