Logically, imo, when the (demonstrated) probability of a pullback (or oeverbought/oversold) is relatively very high, an increase of trade size would be considered, although in a losing position.
The old Martingale system - doesn't it lead to disaster if you don't have an unlimited bankroll? Also, you must be dealing with even money bets. Beware the fat tails of the probability distribution....
Steve, I am looking into MC analysis now. I found this website as a starter: http://unicorn.us.com/trading/prosizer.html He also gives the competiton: http://unicorn.us.com/trading/competition.html Does anyone know which of these, or any other not mentioned, they have used that they really liked? nitro
I'm sorry, but without any type of statical analysis you are just spewing nonsense.... your system might have a 50% win rate, but it could have 10 winning days in a row. what i am saying here is that for you to be able to justify increasing or decreasing size depending on your equity curve, you need to prove to yourself that the statistics of it make sense. what you are saying doesn't do that.