When I first read this, I thought it was a sick joke. Nobody's account size could possibly be an edge. Nobody's account size can outlast the market. There are IB's and HFs worth many billions of dollars who have blown out from crap trading positions. To imply that an individual could is of course complete nonsense.
It's a major edge if your goal is to blow out your account. This strategy ends more trading careers than any other reason. "The market is wrong and I am right......I'll just keep averaging down until it goes my way".
Cuz they don't do it right. Of course, being able to correctly predict direction means you don't have to average down; you can go all in in the correct direction from the beginning, which is going to result in significantly higher profits which will come much quicker, too, because you don't have to wait for the market to reverse and go in your direction before your position becomes profitable. Clearly, predicting direction is the superior strategy... I've just never met anyone who could do it.
============= That huge account edge... averaging down, no matter...; sounds like witty sarcasm designed to teach a lesson he will never, NO NEVER forget LOL?bellylaugh! However the first 3 points are good/cool/helpful Another way to get an edge; find out how top traders or simply profitable investors use the word ''edge'' a]Market Makers Edge by Josh Lukeman{market maker, & bro of Noah Lukeman}. However notice i used the words investor & frankly i ignored his Daytrade subtitle & focuse on his multimonth candlecharts-another edge. %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Z] In fairnesss to trading question, another way edge is used by a top trader. Rich ''Turtle'' Dennis/Jack Schwager Top Trader interview wrote; ...market limit up, limit up10 days in a row, they were giving you an edge...to trend follow.... [Accurate Paraphrase, not quote] Not saying markets usually go limit up 10 days in a row; especially SPY, DIA, QQQ, SLV, GLD.Word to the wise. A young age, can be helpful, simply may have more time to make up losses................... Keep records; daytrading losses -years, and long term trades profitable-years , short term investing profitable-years & decades .
Intradaybill says I don't know what I'm talking about because i disagree that this is an edge. Has me on ignore. Think about what this tells you about intradaybill.
This is brilliant commentary. Better yet, does the trader have a strategy that will survive live trade drawdowns several times in a row in terms of capitalization. Bravo, FT.
OP it sounds like your prop shop is throwing you to the wolves. You don't have the slightest idea yet what it takes to be a consistently profitable trader but you are trading live with what little stake you have. Really bad idea. At least you are asking the right questions but protecting your capital should be priority #1.