I don't need to learn how to average down: I'm all good. But it does seem you need to learn some basic trading tactics considering you delineated your significant losses in a post on this thread that you recently just deleted. Keep working with that rabbit.
I wish I have enough money to average down 28 times in a row. Even if I could average down 10 times in a row, it would be enough for me to continuously delay the losses in a fair coin toss with a couple of non-correlated average down strategies.
Here is a question for you, oldtime. If you have a system that has an edge, does it matter if you use average down vs. random position-sizing?
A question I would like to present is.... What's wrong with taking a realized loss and resetting vs unrealized red and possible climbing ?
you are correct, I deleted it, it was too much information the losses you were referring to were just recently incurred in a trade gone bad -20% -5% +8% +4% I still haven't added them all up and have moved on and recovered a little like I said what made it so bad was I had no more money to do anything with, so I "bailed" as they call it Like I said, I have endured much larger drawdowns, but that was with plenty of dry powder as far as trading plans go I have one, and would never suggest that anyone does it your way as you did, so you keep doing your thing and I'll keep working on mine live and let live I always say but thanks for the suggestion
If you have a stop and average into a trade before your stop is hit, then there is no problem. If you just keep averaging down just hoping the market turns around then you have a problem.
Absolutely, otherwise there would be no need to risk being right on small size and feeling ambiguity and relying on hope on bigger size. Any trader averaging down is absent minded of bar entry techniques, that's why they need to do it, there's no other reason really.
This happened to me a lot early in my career. I would re-enter at the stop location if I had a good feeling it would reverse after taking me out. To this day, I average down (and up) but it has to be done within reason. You have to have a max loss limit in place or you can get really stung. Like everything associated with trading, averaging is more an art than a science.
Disagree. It's the random element of the market that makes averaging at certain times a viable strategy. You can't just do it blindly, however. It has to be done strategically.