However, I would not recommend a novice average down. Only experience can give you the sense if the odds are still in your favor to average down into a loser. Most probally can’t do it well because of the emotions involved. However, to the chagrin of the gurus it can be quite profitable and render a high win rate.
yes it is usually the most attractive because you do not need much capital and you really make fast money: but because it is the most attractive it is the most difficult too
Good for you if it works for you. But statistical properties contradict your last claim. The shorter the time frame the more random moves are. In all asset classes. On a micro and millisecond time frame the probability of the next move to be up or down or unchanged is uniformly distributed. That is the basic assumption of every high frequency trading model off which multi billion hft firms are built upon. Just saying.
Averaging down always has a high win rate until the rare event when you will be taken to the cleaner.
Most everyone taking this approach loses money very quickly not makes money. Averaging down is in my book one of the worst approaches to trading. In my many years in professional trading I can confidently claim that there is a strong positive correlation between the seniority and profitability of a trader and the degree of how strongly such trader advises against ever increasing position size on a losing position. There are the rare exceptions but generally adding size on losing positions is a hugely inferior strategy approach
i think he makes it work he must be taking only the most likely trades or he has system that makes it work. i know this is not for a beginner or even for everyone
And for me, I am amazed at your description - it is exactly my style and conception. Glad to know "I am not the only one".
I would say altogether - I have built my system over the years, the system, and set-up of the signals, which I can trust and feel confident when I have to open my trade and then follow it. It took hours over hours of market observation, thousands of sim trade and hundreds of real. Good books and webinars and some life coaching too. Mostly to build psychology, the technical part of trading is really not hard, what is hard is to put it in a field and master it without being distorted by emotions.