I agree. It's up to you to work out probabilities of every trade you make. Probabilities will command reducing/increasing position size, it's common sense. If you ask Gary he does double positions when he feels confident of the outcome. It's like driving in bad weather conditions, will you drive 70MPH or would you reduce speed?
There is no point losing your nerve here. What you mention about the professional consensus is total 100% misleading information, show me where you got that info, please.
What anyone else says about the market is actually irrelevant. Except where the comments may get you into thinking about what was said and testing it by your own market observation. Your system stats will either confirm or deny the validity of any strategy. Whatever works is what you should do. Personally, I have never got scaling in to work for me on an intraday basis. Here's the reason why. Quite often if a trade works it will take off straight away without providing you the opportunity to load more contracts. Yet, if the trade doesn't work you will always have added more contracts. So, the position size becomes unequal. I have tested this according to the way I trade the ES and have never got it to work for me. But, if it works for you, good luck to you. Cheers.
I understand now why you oppose averaging down, but that doesn't mean it's bad practise now does it? I can find lots of negative commentary regarding using 1 point stops on ES, it doesn't mean it applies to you though, IF you make it work.
http://www.dtguide.com/forex/How_To...ng_Strategy_Ever_That_You_Might_Be_Using.html http://www.esignalcentral.com/exchange/v19_01/trading_education.asp http://stocks.about.com/b/a/141676.htm http://www.decisionpoint.com/TAcourse/TradeMistakes.html http://www.trade2win.com/knowledge/articles/general_articles/simple-rules-of-trading/ Shall I go on? This is advice for mere mortal traders, like I keep saying.
Have a look at my divergence journal's current PnL, real-time calls with stops, targets and yes, averaging down on most to pin down reversal. http://www.elitetrader.com/vb/showthread.php?s=&threadid=72117&perpage=6&pagenumber=26 Perhaps you are right, this type of trading is not for majority, as majority simply can not afford the word drawdown due to under-capitalisation issues. I recently posted a swing short trade, which was averaged down. It did result being a loser, as max risk per position kicked in. Prior to that trade I had a winning swing trade, which was averaged down all the way. There is no right or wrong as long as one can say - ENOUGH
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