I would like to discuss averaging down

Quote from ammo:

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I will review your attachments after market.

Example of tradable swing low in V this morning:

Price gaps above prior high of day (swing high pivot)... runs up to 135.95 and drops like a rock. Looking to the left--on 9/13 one can see a sharp drop from the intermediate pivot swing 15 min candle ending 3:15 pm EST... this indicates strong supply. Having been the first time back to this level.. there was a very high probability of a reversal. So we have a short opportunity with a stop above that intermediate pivot high of 136.17 (some use a penny above... such as Scott Redler... i prefer to give my pivots some additional wiggle room of $ .20 - $ .30 to account for short time frame ATR noise... especially in this case given the fact there are "levels on levels" nearby. But I didnt take the short. On strong stocks that gap above prior highs.. I prefer to wait for a pullback into a gap floor support level. So with V-- it establishes a pivot floor low today at 134.95. (What was resistance -- the high of day pivot from yesterday -- 134.84 acts now as support). So I chose to enter at 9:53:05 against this support. Unfortunately at the first run up - I tried to get out of my 130 strike front month calls at 5.55... the market maker put me on the Ask and just kept me there... price retreated and I stayed with the trade. Notice how it retested the level and gave an opportunity for anyone who wanted to trade against the intraday pivot low of 134.95... it came within $ .02 of that level before reversing. I was able the second time to get out at 5.55 at 10:39:06. This was supply and demand on both ends working with high probability... and very low risk.
 
Quote from ammo:

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
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So I get the gist. I never have used MP... but I get the idea. The charts obviously look nothing like what Im used to... so I cant even speak intelligently to them LOL!

My contention is if there are indeed ways (like you allude there is) to determine the highest probability areas of MP s/r lines... why not concentrate on waiting for those levels... the best of the best... and put on full size.. maximizing profit potential while keeping your position size in check with 1R where proven wrong? I mean if the best of the best MP level fails-- you are wrong... get out of the way and wait for the next level. Is the logic flawed when it comes to MP? Because if you enter a trade earlier on small size- and get the desired move... you dont stand to make much profit anyway. Of course you can add- but then price could reverse and now your basis is higher than you want-- and then you have to recalculate again how many more adds you can do before you hit max loss. My question to you earlier was to try to get a feel for how efficient and easy it is for you to on the fly scale in via avg down- and be instantly aware at various levels what % of max loss you will currently be at. Isnt it a logistical math nightmare at times?
 
if you protect your position and add subtract to it,improving the avg or reducing exposure to loss,you have a position on for the move instead of thinking about joining you are already in..i have a max position size and a max loss size that are constant,back to that mention of avg monthly profit,i am only aware of max, which i can take,anything under is a less painful,so i don't think about it,the max is the risk used to make trading possible,at a max profit
 
Quote from ammo:

if you protect your position and add subtract to it,improving the avg or reducing exposure to loss,you have a position on for the move instead of thinking about joining you are already in..i have a max position size and a max loss size that are constant,back to that mention of avg monthly profit,i am only aware of max, which i can take,anything under is a less painful,so i don't think about it,the max is the risk used to make trading possible,at a max profit
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So if you are long-- are you saying you "subtract" on the way up.. on the way down... or both-- to book profit in chunks as well as to reduce risk if price goes against you? Regardless of either scenario... you are saying you still have some type of position no matter what... until such time if price keeps going against you -- you unload at the point of max loss... or the opposite- until such time you are satisfied with the profit on the remaining position?
 
Quote from riffrafffpatrol:

So I get the gist. I never have used MP... but I get the idea. The charts obviously look nothing like what Im used to... so I cant even speak intelligently to them LOL!

I mean if the best of the best MP level fails-- you are wrong... get out of the way and wait for the next level. Is My
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i only short so after a dump i'm flat, waiting for it to get extended again...if exp is over and we need to fill the gap,once we break that 49 nip, 37 is next supp target below..i added on the open 61.25 ,raised avg, reduced at 52.5,(profit)would have reduced at 49 5 but we did not get there..wait for sunday nite,if we go up add again,if lower reduce at 37 or cover..have to look at more data
 

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Quote from riffrafffpatrol:

So if you are long-- are you saying you "subtract" on the way up.. on the way down... or both-- to book profit in chunks as well as to reduce risk if price goes against you? Regardless of either scenario... you are saying you still have some type of position no matter what... until such time if price keeps going against you -- you unload at the point of max loss... or the opposite- until such time you are satisfied with the profit on the remaining position?
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never long, the market has a much smaller explosion to the upside than it does to the downside, upside explosion probably would'nt exceed my max,downside like flash crash could kill me,but if flat or short ,flash crash would be great,was flat when flash crash happened,so ,no didn't make a dime
 
Quote from ammo:

never long, the market has a much smaller explosion to the upside than it does to the downside, upside explosion probably would'nt exceed my max,downside like flash crash could kill me,but if flat or short ,flash crash would be great,was flat when flash crash happened,so ,no didn't make a dime
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Good reasoning.
 
Quote from ammo:

never long, the market has a much smaller explosion to the upside than it does to the downside, upside explosion probably would'nt exceed my max,downside like flash crash could kill me,but if flat or short ,flash crash would be great,was flat when flash crash happened,so ,no didn't make a dime
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Good logic.
 
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