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I would like to discuss averaging down
- Thread starter Daring
- Start date
Quote from riffrafffpatrol:
There was nothing above that gave you a reasonable expectation where price would turn. This is not subject to debate-- it is fact.
If we are talking about the trade Dustin posted, I strongly disagree, except I don't think he saw it because based on a chart someone posted here earlier, he started earlier.
Maybe he did not want to miss it, not sure of the intentions.
Quote from Daring:
If we are talking about the trade Dustin posted, I strongly disagree, except I don't think he saw it because based on a chart someone posted here earlier, he started earlier.
Maybe he did not want to miss it, not sure of the intentions.
Daring:
The previous all time high was 30.07. Price gapped up... opening at 29.43. At this point-- yes-- there was a point of reference-- the all time high of 30.07. However Dustin did not even begin to short until price had broken out to new highs. His first entry was @ 30.878 at 10EST... his last being 31.29 at 10:03ish EST... price hit the all time high at 10:04EST.
He did NOT have a point of reference above.
Instead he just continued to short.. as price went higher and higher.
Quote from riffrafffpatrol:
Daring:
The previous all time high was 30.07. Price gapped up... opening at 29.43. At this point-- yes-- there was a point of reference-- the all time high of 30.07. However Dustin did not even begin to short until price had broken out to new highs. His first entry was @ 30.878 at 10EST... his last being 31.29 at 10:03ish EST... price hit the all time high at 10:04EST.
He did NOT have a point of reference above. Instead he just continued to short.. as price went higher and higher.
Please refer to this post in the thread.
http://www.elitetrader.com/vb/showthread.php?s=&postid=3631104#post3631104
Quote from oldtime:
I hear ya, I have my own version of spreading over in forex and doubt my averaging down (and up) strategy would work if I was outright directional
Oldtime.........Is it possible to pair trade forex anything like with equities ? If so, can you add layers ? Can you trade in and out of your most recent layer ?
Or are you saying you do it as some sort of safety modality to directional trades ? .....hedging possibly ?
FWIW........I subsequently closed today the trade I posted about the CI / AET chart. It got real sweet at the end of the day. In deed the added layer became an excellent gain. (Sure wish that third layer had been triggered to go on earlier, too. I would be eating lobster tonight with my favorite wine.) It would have been my 9-day wonder.
http://www.elitetrader.com/vb/showthread.php?s=&postid=3631301#post3631301
Quote from Daring:
Please refer to this post in the thread.
http://www.elitetrader.com/vb/showthread.php?s=&postid=3631104#post3631104
Daring... I fail to see your point.
There is no supply overhead when Dustin started his entries... period.
Are you referring to the trend line? That does NOT represent supply.
Quote from riffrafffpatrol:
Daring... I fail to see your point.
There is no supply overhead when Dustin started his entries... period.
Are you referring to the trend line? That does NOT represent supply.
I was only referring to that guy's post, I would not know much about trendlines as I am a moving average kind of trader.
I don't know aqnything about stock pairs. There is some hedging, but I trade 4 pairs, two long, two short, but size on each individual pair is constantly changing independently of the others.Quote from deucy28:
Oldtime.........Is it possible to pair trade forex anything like with equities ? If so, can you add layers ? Can you trade in and out of your most recent layer ?
Or are you saying you do it as some sort of safety modality to directional trades ? .....hedging possibly ?
FWIW........I subsequently closed today the trade I posted about the CI / AET chart. It got real sweet at the end of the day. In deed the added layer became an excellent gain. (Sure wish that third layer had been triggered to go on earlier, too. I would be eating lobster tonight with my favorite wine.) It would have been my 9-day wonder.
http://www.elitetrader.com/vb/showthread.php?s=&postid=3631301#post3631301
I would like to hear more about your levels. I don't really look at it as averaging down. But if you watched one individual pair it would look like that is what I am doing.
What I don't understand is if you did it on just one pair it may not be profitable, but if you do it on 4 pairs at the same time it seems to be. (1 loss in the last year.)
Riffraff,
There are many different ways to trade. I know several traders who routinely add to losing positions and do very well. Of course it is all about context, and it requires experience to know in what context to add and what context to not.
I do not add to losing positions, ever. That is because it does not fit with my style of trading! Others, who have different styles may find that it fits them.
Check out the new Market Wizards book. jimmy Balodimas is the antithesis of what you consider to be good trading, but he has consistently made big figures throughout his career. He routinely adds to losing positions and fades trends!
Also, no offense but I can tell that you aren't currently trading for a living. Just by the way you are talking about things, my gut is telling me it is very unlikely! T3 is a great source as well. Sperling is prob one of the best equity guys out there, but do not think that their edge comes from your supply and demand levels or your neatly fit rules about market action. It comes from experience and creating a trading process that fits them.
There are many different ways to trade. I know several traders who routinely add to losing positions and do very well. Of course it is all about context, and it requires experience to know in what context to add and what context to not.
I do not add to losing positions, ever. That is because it does not fit with my style of trading! Others, who have different styles may find that it fits them.
Check out the new Market Wizards book. jimmy Balodimas is the antithesis of what you consider to be good trading, but he has consistently made big figures throughout his career. He routinely adds to losing positions and fades trends!
Also, no offense but I can tell that you aren't currently trading for a living. Just by the way you are talking about things, my gut is telling me it is very unlikely! T3 is a great source as well. Sperling is prob one of the best equity guys out there, but do not think that their edge comes from your supply and demand levels or your neatly fit rules about market action. It comes from experience and creating a trading process that fits them.