I have to agree, an integral part of my approach is to increase position when in drawdown, in fact I welcome the drawdown with open arms, more profit potential. It all depends on how you trade, if I was taking an outright directional bet though I would not increase size as you are carrying open risk. Cheers John
I do much the same, the problem is that if I keep adding then the spectre of catestrophic loss rears it's ugly head, at some point the drawdown characteristics will inevitably turn into a market reversal and I don't want to be overloaded at that time. My success relies on many small- medium wins and no large or catestrophic losses. Cheers John
I just want to thank Epic, Ammo, The Magican and the others that made meaningful contributions to the discussion, very interesting. Cheers John
Increasing size when the bank is in the middle of having a run on your money is encouraging them to continue with greater incentive. It's a loser strat. Adding after the price has obviously turned could be a viable strat. But you have to have a very good way to tell it has turned.
Hi EJ, Might I suggest that you read thru the thread from the beginning paying particular attention to the posters that I thanked, you should then realize why I and others don't agree with your comment. This will save a lot of wasted effort. Cheers John
Well, I post when I see a thread active. I don't check the dates. In any case I added great value to anyone who will read the thread in the future. I have given the precise reason why the size can't be increased. Because doing so will more or less turn the size against oneself, suicidal style. Why, I even provided a solution to the problem.