And that has to do with "averaging into a losing trade", how?
Are stops a complete joke ?
- Thread starter zanek
- Start date
And that has to do with "averaging into a losing trade", how?
So... "averaging into losers" is a winning strategy... IF you have "the right personality"?
You've outed yourself as either a noob or a fool. Not going to waste time reading anything else you care to post... ON IGNORE!
What about:
1) Set multiple stop levels so that the average is your desired stop. You'll have some units close, and some much farther away.
2) Use an ATR based stop. I like this one, but it tends to give much wider stops, so your position has to be sized accordingly. It does tend to keep you out of "noise" stop outs but still protect you against a major reversal.
3) Try a "2-strikes and you're out" approach. You have fairly tight stops and you see that you're hit pretty often but then price takes off. In this case, Trade 1/2 or 2/3 your normal size and as soon as your are stopped, set an order to get back if your stop is hit. If you're stopped again, you're done on this trade. Since your size is reduced, it's not much more than a single stop out.
+1
The market is telling you something. Why do you not listen?
You could frame your observation out in a more productive way, such as:
"I have noticed that once price drops 2% below recent swing lows, there seems to be a definite edge to the upside."
Now if you can define "2% lows" you can backtest this observation for different holding periods or exit strategies, etc, to see if your observation is in fact correct.
Or, you could just start trading this with small size and see what happens.
Listen to the market and let it teach you.