The casino will ban you if they see you Martingale with a large stack.
Perhaps that is what is being posited?
If you use stop losses then you are essentially gambling
- Thread starter wxytrader
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The casino will ban you if they see you Martingale with a large stack.
Perhaps that is what is being posited?
Not dollar cost averaging...I'm talking about legging in a substantial amount at various points during a downturn. This is stocks but I would do the same with futures and forex but would depend on the carry over fees etc. I don't trade intraday unless 0 DTE where I use stops depending on position size
Spot on.
In a martingale system you are realizing losses by getting stopped out closing the trade and then re-entering with a larger position to make up for the previous loss. Averaging down is just adding to a position.
I start legging in on the single correction and continue lagging in on the double correction (if it has a double correction) and at that point the bottom is essentially in. I prefer there is a double correction as I get to load up more shares of course.
It sounds so silly and reckless...but if you had the bankroll...
wxy may well have the balls(risk appetite and stress tolerance)that we all wish for.
I would like to hear a response to @deaddog 's post though re Enron.
Thats not my understanding.
Martingale in trading would be exactly what you described earlier re owning a position,believing in your position,but adding as it went against you and liking it as an improvement of your average buy in.
Happy to be corrected.
And Gold and OIL ETF's and especially how long it took Naz to come back whole from Y2K DotBomb.
OP has yet to live through a reeeeeeeeeal drawdown. Plenty kept buying as it drop, drop, dropped. Until they had to sell, sell, sell.
Cue the meme:-
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No they won't. That's the reason there are table limits.
Maybe in a raging bull market like we're in now. But in a bear market, you would be a jackass not to use a stop loss. Be sensible, folks, and use your discretion. Don't listen to anything and everything you see here. It's your damn money on the line, after all. Nobody but yourself will care if you lose it all in the end.
Oh yeah? If it's that easy, can you provide some REAL TIME trades?
Congrats for reinventing the martingale system. You'll have a good run until you blow up your account. This is the strategy half the EAs at MQL marketplace offer.