I don't do this in continuation patterns. I do it at reversal areas after a large decline or rise. Today's premarket drop was a perfect example. DD on something like a support break or a resistance break would be pure stupidity. I don't trade breakouts -- ever! That's the absolute worst strategy for day trading. I trade extreme price movements per statistical analysis. A consolidation area is not extreme anything so I would use this method for that type of setup.
A very powerful fut's strategy
- Thread starter ProfitTakgFool
- Start date
I don't do this in continuation patterns. I do it at reversal areas after a large decline or rise. Today's premarket drop was a perfect example. DD on something like a support break or a resistance break would be pure stupidity. I don't trade breakouts -- ever! That's the absolute worst strategy for day trading. I trade extreme price movements per statistical analysis. A consolidation area is not extreme anything so I would use this method for that type of setup.
Oh, I agree. I absolutely agree, you could make alot of money with this as the money management part of your strategy. The thing is, you haven't given us the rest of the strategy, though. What are your triggers? What are your setups? How do you determine your stops?
I mean, aren't you leaving out most of what you really need to make the Martingale work?
And given a very successful trading method, couldn't you actually make most traditional money management techniques work, except perhaps the all in approach?
And doesn't a truly sound money management plan actually help those traders who have only marginally successful trading methods, more than, say, the Martingale would?
I mean, aren't you leaving out most of what you really need to make the Martingale work?
And given a very successful trading method, couldn't you actually make most traditional money management techniques work, except perhaps the all in approach?
And doesn't a truly sound money management plan actually help those traders who have only marginally successful trading methods, more than, say, the Martingale would?
In plain english, what the OP is saying is that setup A is not very reliable so he takes a small position, if setup A fails, that is actually a signal, a signal that setup B has a very high probability of working, therefore he doubles his size on the 2nd trade.
So he is basically betting more when he has better odds.
The multiple accounts is just a way to 'segregate' the money in his head, it is more for psychological purposes.
So he is basically betting more when he has better odds.
The multiple accounts is just a way to 'segregate' the money in his head, it is more for psychological purposes.
... are you sure that's what he's doing?
I think you need an epiphany.
He's martingaling his ass off, and because the markets chop back and forth so much, he thinks he has a "very powerful futs strategy", which works until it "blows out", which he has admitted, it already has.
JJ
P.S. My posts are no way meant to be insulting or deamining to anyone ... but I most defintiely do belive a trader should handle a straetgy like this as if he were defusing a time bomb, because eventually it can go KA BLOOM!
Of course I track them. My win rate on the DD is nearly 100% this year. I have 1 loss and it was a BIG one but the money I made prior to that and after the fact has easily exceeded the day I got butchered.