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Most people blow their accounts Martingaling because they apply it over too short of a price range. Someone will trade like a $10k account on the ES or something and start with 1 contract and double it every 3 points it goes against them. And they'll probably make some good money for a few...

I have no edge. I have never been able to predict direction, nor do I anticipate the ability to do so in the future. Therefore I am limited to methods that either a) make money regardless of which way the market goes or b) make money eventually when the market goes in my direction. Options...

So use weighted index ETFs?

You misread the first post. Please reread it and rejoin the conversation when you understand how there is no risk of blowing your account with proper position sizing and pricing. We're not talking Bollinger Band martingaling that causes people to blow their accounts when price moves 10% or...

Please give an example of this.

Why's that?

What? Who is using margin? Oh, maybe I should've mentioned that in the first post. I want to do this without margin. Right now SPY is like $130, so 100 shares would cost $13,000.

Please explain what you mean by this.

If I had a trillion dollars I wouldn't even care about trading :D

Seems like there could be a lot of "float" (is that what it's called?) using this method. For example, during the year of 2004 the entire yearly range of SPY was $10. So you probably would've sat on your money and done nothing the entire time, potentially in the money or out of the money...

One: not an issue with a big enough account size and/or proper position sizing. Two: that's a potential risk. You could buy your smallest first position and then the market goes up 50 points = you only get a small gain.

It makes a small move against you potentially turn into a loss. I never understood averaging into a position. It raises your average cost. Sure, you can potentially pyramid your way to a huge gain, BUT a small move against you changes it into a loss.

I think the difficulty becomes choosing a profit target. Sell too early and miss out on potential MASSIVE profit. I wish I still had my shares of QLD from back in the day, but I sold them a while back.

How is doing it on the way UP the best idea? Do you mean with a short position? Price can go up indefinitely. I'd never do that. Forget using BAC. Companies can go to 0. SPY can't.

:eek:

I already stated % returns are irrelevant. The goal is a liveable income, not a certain % return. $50k-100k per year would be cool. I don't have to be a BSD and make 20% per year on a $10M account. I really don't care that much. I want to live comfortably, I don't care if my return is a...

Why would they go out of business?

What is your basis for "underperforming a CD"? I just got some stuff in the mail the other day for a 12 month CD that is paying 1.5%. Let's assume that was just really crappy and you could get a 12 month CD that pays 5%. Why would you assume this method would make less than 5%? But...

The indexes went up at 2pm. What are you tlaking about.

Realistically. Not profit every day, but net profitability at the end of the year on average. $100k? $500k? $1M? What markets would you trade? This is a serious discussion, but I expect there will be a good number of people who want to talk about how martingaling is a losing...