You don't have to call ALL tops/bottoms correctly. But when you are damn sure, go all in and take advantage.
I think what people here are saying is that you look for correlations that indicate a local minimum/maximum and good risk management allows you to keep your money when you are wrong. Letting the winners ride will make up for the times when you're wrong. This is why something seemingly unrelated to top/bottom (EMA/SMA/etc) is used in conjunction with other things to call tops/bottoms. Just don't go all in. Incrementally add to your position when you're right, take it off when you're wrong. Does that cover it?
I never add to a winning or a losing position. I enter with full position each time. I want to capture the most when I am right. I can't do that unless I have full position on at entry.
Well...that was then and this now. Thank God for stops! We did well with our other positions. Thanks for the follow up!
Well we did hit that and went through it for a bit... stayed around that level for 10 hrs in AH trading before market opened on Monday. So I'll take that
Maybe maybe not. Either way I went long some insurance to protect myself just in case we get a surprise LTCM style.