A trader may scalp with 100 lots liquidity still won't be a problem in active hours. When you are doing 10000 lots you are forced into swing trading. So I do swing trading just in case I need to do 10000lots some day
I made no reference to averaging in this thread. You're thinking of someone else. I just think you're full of (2008) Lambos.
That may be akin ( a kissing cousin) to my scalping technique of minimizing losses by doubling up in the same direction as the original trades entered and locking in smaller profits over and over again until the market probes down then back up to that initial entry of spy at the top in 2022. The profit might would be a lot more if: 1) one reversed and shorted the decline and averaged up (i.e.adding to one's winning position) as it moved in one's favor. 2) during the process getting long on every rally. and shorting every decline. So, more money shorting declines and buying rallies over and over but I think I have already indicated that LOL. Or 3) maybe using the "minimizing the loss" technique called "whittling down" I talk about in my journal and videos. Not that I am advising anyone to "whittle down" just saying it may have even produced more $$$ in this case depending on how many times one was able to execute "whittling down." That is FOT.
Hmm I would say if he is an investor using EW on SPY then he really really perhaps might want to consider studying HURST. At least them there pages I posted. Or buy HURST'S book.
Oh no! now a debate over DCA or averaging down. I gotta leave this thread. Been fun though. To bad it ain't a weekday. I could be scalping. Picking up crumbs.
If he really believed in EW (pronounced "Ewww!" with a grimace) then he would have more confidence in his entries, and therefore consider leveraging to some extent to capitalize on that timing.