Increasing Size During Drawdown

Discussion in 'Risk Management' started by oldtime, Oct 1, 2011.

  1. If you think about it Oldtime adding size is little different than leverage. Used smartly it pays well. Used badly, it kills you. There is nothing wrong with averaging down. Nobody can choose entry price always and perfectly. However if you add the size too quickly you can empty your account in a big hurry.
     
    #201     May 14, 2013
  2. kut2k2

    kut2k2

    Lol

    You revived it yourself just last month. Your pretense that you're over this topic doesn't wash.
    The truth is, you're a degenerate gambler who is now using trading to place your bets because you're bored with craps or the horses or whatever. I just wish you'd shut the fuck up about it.

    Once more:

    This is a trading forum, not a gambling forum.

    And Martingaling is for unteachable fools.
     
    #202     May 15, 2013
  3. ok, sorry, which forum do I go to for money management?
     
    #203     May 15, 2013
  4. Pipflow

    Pipflow

    Well increasing the lot size after each drawdown would lead us to use the martingale strategy which is one of the gambling strategies and for this the trader should have very huge amount of equity so that they can keep doubling their lot size. I do not prefer to use this strategy as the risk involved is very high.
    Better to use stop loss or hedge the trade for better risk management.
     
    #204     May 15, 2013
  5. kut2k2

    kut2k2

    So if you shouldn't Martingale, there is no money management here? That's just sad, dude.

    To answer your previous question about what common sense has to do with the thread topic:

    Assuming you truly want to succeed at trading (not everybody really wants to), common sense says you should win big and lose small.

    You can't win big if you bet small during winning streaks.

    You can't lose small if you bet big during losing streaks (aka drawdowns).

    Common sense, and fully in line with the mathematics of winning.
     
    #205     May 15, 2013
  6. ??? so you know when losing streaks are going to continue? and you know when winning streaks are going to trend?

    do you ever know when it is going to chop and reverse?

    might I suggest you spend a little more time gambling and money managing, and a little less time guessing what it is going to do?
     
    #206     May 15, 2013
  7. kut2k2

    kut2k2

    So is your method of guessing when a streak is going to end working for you?

    I don't try to guess what price is going to do, I observe what it is doing and respond accordingly. So what if I lose one big bet because a win streak suddenly ends? The big bets I won beforehand more than make up for that loss.

    You're so busy trying to predict what price is going to do "next", you can't appreciate and take full advantage of what it is doing RIGHT NOW.

    That's what makes you a degenerate gambler, and destined to be a loser if you aren't one already.
     
    #207     May 15, 2013
  8. peace, good luck to you and your trading
     
    #208     May 15, 2013
  9. Looks like we are having a hot debate. Well I can only say that everyone has his own style and if it is bringing him money, it is the best for him no matter it is bad or worse for others.
     
    #209     May 20, 2013
  10. I think the point of some of these posts is that there are Martingale like approaches (not full Martingale) that are exposed that we all know are weak risk/reqard plays even if they "work" for awhile.

     
    #210     May 20, 2013