that is pyramiding and works great in bubbles, where theres lots of momentum. just like a few posters said its devastating in chop
hmm, come to think of it, just imagine how you would have been cranking up your short positions in '08 and early '09. Mirroring Livermore's story, you probably would have gotten a call from Jamie Dimon in early March, asking you to stop shorting the market. You then would have covered all your shorts, and started BUYING, pyramiding your amassed fortune over the coming months.
If you have no edge, martin gale or reverse are both losers. Just like in roulette. You just lose in different increments.
buy at strong support, sell at strong resistence if it confirms strong support add when it breaks the next resistence, if it fails strong support, get out if it confirms strong resistence add when it breaks the next support, if it fails strong resistence, get out ... i think it really is that simple ... EDIT: Don't lose after you've added
... martingale and reverse-martingale seem to be favored by "guessers": jump in, then see what happens ... not a good strategy When you know what you're doing compounding's enough (!)
Interesting for you to say that. I like to use channels for trend identification, they seem to last forever in the larger time frames, yet on the small ones their life-bar is very limited. X
yes, but as we all have experienced ... the ones that failed to fail make our days,.... weeks, months, years