I guess I have trouble even calling that risk management. If anything, the risk is increased the further price gets away from you. I would actually call what he did position management, which is kind of opposite to how you say it. I would say its good position management because he in fact averaged up his position average, so his entry position got a little better each time he sold higher, but his risk kept getting worse and worse.
Now seeing as this was natural gas, it more than likely has different rules since its a commodity and not an equity index and is more than likely a bit more mean reverting, so it makes more sense to add to a short that keeps going higher, but my gosh, its just not a good strategy in the long run me thinks.
