Traders go into averaging down to void a loss. That in itself is a terrible technique. The purpose of averaging down is to put higher probability in one's favor. But for that to be so the larger context MUST support averaging down. Or it is NOT a smart strategy. And it can go wrong at times even in a good context. So, the question becomes what will a scalper do when averaging down in a good context does not work and is turning out bad. One's options are very limited. So, you have to know beforehand what you will do, or one's emotions will champion one's reason and bad decisions will be made.
Unless one's is very accurate in entries and exits that will likely lead to 1000 paper cuts on say a 1pt SL (initial, mechanical or mental) to make a 1-point gain. Try it on a SIM and see. It is next to impossible to maintain a high win rate scalping utilizing FOT with tight SLs. IMO no metric is more important for a scalper that high win rate. I know traders will vehemently disagree with me. Scalping is going for small profits and doing so on big volume of trades (FOT) and a scalper cannot pull that off with a low win rate. Unless they are a HFT trader in the building next to the exchange and scalping hundreds of times a day on low latency grabbing very minute profits with a 53% to 55% win rate. We as retail traders cannot compete with that scenario. So, we have to scalp using different strategies and techniques. Ok how much time are you going to give a trade before jettisoning it with a loss to safeguard a 1:1 R:R? And what size move are you going to jump for if scalping? These are factors that influence whether one has a high win rate or low win rate and whether one can in fact trade using FOT. Trying to scalp for 40 points with an initial SL of 40 points is not going to be easy. Generally, market probes are not going to support that too many times in a given period. Given the way in which market such as ES wax and wane. IMO scalping must take into account the general size of individual bar probes and groups of bar probes in any given instrument. Not all instruments probe the same way.
It depends on what technique I am using. If I am whittling down my SL is going to be wide and I will be staying in and getting out quickly when I get a profit over and over. If I am averaging down and it goes against me, and I am just going to take the loss, double up and reverse direction, Then I AM NOT going to wait for my initial wide SL to be hit. I will slide it up and down and quickly get out or just hit "flatten." Then double and reverse directions. A tight SL to get a small profit is tight whether hard SL or mental. If the intention is to keep a 1:1 R:R it is going to because in the end because hard or mental ends up being the same thing. Catastrophic SL is a horse of a different color. A scalper IMO must understand that most of the time R:R is going to be upside down in scalping or it will end up being too many losses that lead to paper cuts bleeding an account dry. A scalper has to make peace with that. I personally have no problem being upside down. I care only if probability favors my PT being hit before my SL is hit. And that depends on the larger context, the individual trade setup, my stomach for risk, my willingness to accept smaller reward. Sometimes I fail to clarify things. It goes back to my intention and decision as I am managing a trade, that I am already in.
Bullshit, I see now that you are swinging for the fences. I used to respect you. Now you are worse than me. POS. You know what your REAL problem is? You do not maintain a REAL MONEY journal here like I do. And you never have. The reason people do not maintain real money journals is because they are fake, and do not trade real money. I believe Volpri is one of these types. And by the way, let me qualify that statement..., My journal is net negative. But at least I have the balls to maintain it, by hook or by crook. You piss-ant mother fucking wimps who cannot show a profit? Neither can I. So show the net loss. I' m not afraid to, so why are you? Afraid your ego will get bruised? Fuck off!
No, I do not want it all. Life is about balance, a free Big Mac, here and there is good enough for me.