%% OK Depends on what we are trading; averaging down on DAL...………. since its been bankrupt once + that was not virus related/so that could be deadly. A strong trender like QQQ; many ways to make a profit off that...………………………………………………………………..
Yes sir, I won't average down on DAL or GE (again ) for that matter. But average down on QQQ maybe smart? Like doing DCA. Not a prediction. I was just questioning the wisdom of making blanket statement using words like "never".
Scale meant average up and not average down? I had a side conversation with @murray t turtle, one of my mentors, on the subject of average up/down so just want to clarify your statement. Thank you. PS: To answer your question, I don't usually scale, I normally bet a fixed size based on Kelly. Do all my analysis and backtest, if encouraging, I bet. Often, if I add to my position I average down and not up, like this last March, kept buying xxx, yyy, zzz... on their way down. I only trade options so what I do may not be relevant to your question.
%% QQQ tends to trend so well; could profit both ways/with reasonable size. Having said that, exspect more roller/ coaster this summer. DOW ran up so much yesterday it may have stalled /LOL??...............................................................