-to those who use calculated averaging down..

Discussion in 'Trading' started by TGpop, Jul 22, 2010.

  1. TGpop

    TGpop

    i should add that my average holding period for averaging is about 2 weeks, but i have many trades which he pyramid works and last 2-3 days
     
    #21     Jul 22, 2010
  2. Comparing a weeks long position vs. intraday position. Overnight positions have a higher probability for large drawdowns due to a gap against you, due to news or just because. To compensate, you need more capital to sustain possible drawdowns, when compared with intraday.

    In your situation, the risk largely stems from price going against you while you sleep. Or a gap after the weekend.

    Swing positions typically take on more risk with the objective of more reward.
     
    #22     Jul 22, 2010
  3. TGpop

    TGpop

    will just have to adjust my target....the more i average, i should move my target. for example going long cable with a set target, after averaging that target may be unreachable so i should move it down...
     
    #23     Jul 23, 2010