Reverse Martin Gale strategy

hmm, come to think of it, just imagine how you would have been cranking up your short positions in '08 and early '09. Mirroring Livermore's story, you probably would have gotten a call from Jamie Dimon in early March, asking you to stop shorting the market. You then would have covered all your shorts, and started BUYING, pyramiding your amassed fortune over the coming months.
 
Quote from Xman:

In my experience, and this is a limited one, trends have a better chance of holding in larger time frames. Intraday, trends are not the norm, therefore it would make sense to add to winners on trends based on charts spawning multiple days perhaps weeks of data, rather than risking immediate reversal in an intraday trend that can hardly be trusted.

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... it actually goes the opposite way: shorter time frames trend more :)
 
Quote from peilthetraveler:

So if Martin Gale strategy will eventually blow your account, wouldnt doing the opposite give you insane gains?


I hear people say Martin Gale strategy (where you keep averaging down until the stock goes up) will eventually always blow you up. So i wonder if there is anyone that has ever tried the reverse. When a stock goes up, add more and more. Seems like a good way to lose money consistantly, but have one absolutely huge score every now and then.

Seems a little crazy to me though, but maybe some of you have tried it before.
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If you have no edge, martin gale or reverse are both losers. Just like in roulette. You just lose in different increments.
 
buy at strong support, sell at strong resistence

if it confirms strong support add when it breaks the next resistence, if it fails strong support, get out


if it confirms strong resistence add when it breaks the next support, if it fails strong resistence, get out ...


i think it really is that simple ...

EDIT: Don't lose after you've added
 
Quote from peilthetraveler:

So if Martin Gale strategy will eventually blow your account, wouldn't doing the opposite give you insane gains?


I hear people say Martin Gale strategy (where you keep averaging down until the stock goes up) will eventually always blow you up. So i wonder if there is anyone that has ever tried the reverse. When a stock goes up, add more and more. Seems like a good way to lose money consistently, but have one absolutely huge score every now and then.

Seems a little crazy to me though, but maybe some of you have tried it before.
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... martingale and reverse-martingale seem to be favored by "guessers": jump in, then see what happens ... not a good strategy :) When you know what you're doing compounding's enough (!)
 
Quote from charts:

... it actually goes the opposite way: shorter time frames trend more :)
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Interesting for you to say that. I like to use channels for trend identification, they seem to last forever in the larger time frames, yet on the small ones their life-bar is very limited.

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Quote from FeenixRizin:

buy at strong support, sell at strong resistence

if it confirms strong support add when it breaks the next resistence, if it fails strong support, get out


if it confirms strong resistence add when it breaks the next support, if it fails strong resistence, get out ...


i think it really is that simple ...

EDIT: Don't lose after you've added
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Sounds excellent my friend, unfortunately the market is full of failed breakouts and breakdowns.

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Quote from Xman:

Sounds excellent my friend, unfortunately the market is full of failed breakouts and breakdowns.

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yes, but as we all have experienced ... the ones that failed to fail make our days,.... weeks, months, years


:D
 
Quote from FeenixRizin:

yes, but as we all have experienced ... the ones that failed to fail make our days,.... weeks, months, years


:D
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Cant' argue with that. Thank you for your response.

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