What I dislike about averaging down against a trend is if you are wrong you can get stopped out with a 6 lot on, but if you are right on the original entry your profit is on a 1 lot because you never got to add. How do you manage risk in this style of trading ? Do you have a max contract size or do you use a monetary stop when averaging like Ammo ?
yes V - i have been stopped out -but now have learned to be better timed in my entries -but i never set a hard line stop just a catasrophy stop -i always reasses my entry if i dont like what i see happening - i read somewhere once -when the info changes then so does my opinion
missed max contract size-- i never get near it -but have been very uncomforable at times - when ever i hear myself say - i am gonna just let this run and see where its gonna go -- I GET OUT OF THE TRADE - because i know its going to clean me out