ES Journal Archive (2011)

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Quote from volente_00:

The above person was adding in order not to be wrong and had no stop.



There is a difference between adding to losers and adding because the trade still meets your criteria within predefined risk parameters
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Hola Amigo!! Best answer!!! Have some mojitos!
 
If you have 3 add-in average levels at equidistant prices in a "trading range" you can be "right" 87.5% of the time and still only breakeven after costs over the long term. If you do it against "a trend" your advantage vanishes even faster. If you are a marvelous level picker, and put your biggest size at the extreme spots then your mileage will probably be better. In any case the % return-on-risk of your account will likely be dismal.
 
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