-to those who use calculated averaging down..

What is your avg holding period?

 

Personally, I exit all at one price, if the trade dictated an avg in.

 

2 weeks ish

 

i've been thinking that the more i average, the bigger the target i should use...say if im 50% in i should aim for 3 ATR...100% in 5 ATR..i think it makes sense...so i dont aim for large up moves when price has only fallen a little....i think there's a higher probability of a bigger up move after a bigger down move....what do you think?

of course, even with averaging you may lose...and if volatlity dries up it can be painful...

 

Hmmm, this is a lot longer than my trades. I day trade only so my mean reversion strats aren't susceptible to overnight risk. Maybe someone else on these boards does longer term averaging, unfortunately my experiences really only apply to faster time frames.

 

You should have a lot of capital to be averaging down into weeks long positions...if not, you are playing with fire.

 

what difference does it make?

 

Higher probability for large drawdowns.

 

explain?

forex is a very good market for small accounts, not stocks.

 

also,don't forget i pyramid when i'm right too, averaging is only when my entry in a trend is incorrect