I would like to discuss averaging down

Quote from oldtime:

I wouldn't do it that way. Especially flat by any date or time certain. I have all eternity to let it play out.

I have no risk reward ratio except in historical analysis.

I wouldn't short anything unless I also had somehing on long that was correlated.

and even one pair isn't enough for me.
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Well here's what I know- of all the avg down apologetics here...not one yet has been able
to make a case where the strategy maximizes profit and minimizes risk.

Give me a concrete real world example... anyone...? Bueller...?

Simply stating it works doesn't cut it. "Works" is relative. The risk one takes on against the profit one stands to make is the ultimate litmus test.
 
Quote from oldtime:

He's gone already? shucks, I was just starting to get used to him. Must admit, it was a rough transitioning for me going from Captain Kangaroo. I'll be glad when things finally stop changing.
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Yep.

And rotary phones aren't in anymore.

They got this thing called umm..a "me phone" I think it is.. that's gonna make them obsolete.
 
Quote from riffrafffpatrol:

Well here's what I know- of all the avg down apologetics here...not one yet has been able
to make a case where the strategy maximizes profit and minimizes risk.

Give me a concrete real world example... anyone...? Bueller...?

Simply stating it works doesn't cut it. "Works" is relative. The risk one takes on against the profit one stands to make is the ultimate litmus test.
More...
I will agree with you 100%. I've studied all this and read all the opinions of mathmaticians.

Actually, one is not better than the other, other than savings in costs. They are exactly the same. And going all in is superior if you are a good guesser.
 
Quote from riffrafffpatrol:

Well here's what I know- of all the avg down apologetics here...not one yet has been able
to make a case where the strategy maximizes profit and minimizes risk.

Give me a concrete real world example... anyone...? Bueller...?

Simply stating it works doesn't cut it. "Works" is relative. The risk one takes on against the profit one stands to make is the ultimate litmus test.
More...
risk is a tool,use it in piecesx,if you risk 1/12th of your acct per month ,you will be in biz for a year,if you have an avg monthly profit after a few months, then your risk could be monthly avg if it's greater than 1/12th your acct.that's it,follow your risk parameters and avg away,add and reduce with the ebb and flow and remove at target or when risk is met or you feel it will be before target,always have that max loss stop in
 
Quote from ammo:

risk is a tool,use it in piecesx,if you risk 1/12th of your acct per month ,you will be in biz for a year,if you have an avg monthly profit after a few months, then your risk could be monthly avg if it's greater than 1/12th your acct.that's it,follow your risk parameters and avg away,add and reduce with the ebb and flow and remove at target or when risk is met or you feel it will be before target,always have that max loss stop in
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So ammo- do u religiously and accurately ensure that when u do average down and are deemed wrong on the trade - your loss is always apprx 1R?

And when u avg down - would u say u do it similarly to example Dustin provided-- small 100 lot adds that build up to what is hoped to be a full position...within seconds of each add-- or would u say your style is more like...i dont know...lets say 20%... then anither 20%... then another etc..or some other combo - waiting for predtermined levels to hit before adding?
 
like your pivots,market profile has several s/r,i just short at res,or start shorting into res if we are nearing,piece by piece,size depends on weight of s/r..wait for turn and ride to smaller weighted targe,reduce ,add on the bounce,and ride to weighted target,..not that simple ..but that's the gist..always honor the max stop ..which rarely gets hit
 
looking at spx , expecting to fill that cleave,maybe drop to the 1404 nip,over time,hard to gauge when/if it will happen..if it stays up here i would reduce on a pull back and add on another up move raising the avg,all the time waiting for that cleave fill
 

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