Trading Strategy

[Bob111]

man..you just dont get it...besides trending market i mentioned housewifes for purpose-that exactly what most of them do-they trying to average down losers and keep doing it till they lost their profits and then-their savings.
generally-it is VERY bad idea to average down. specially-double,triple. i dont know much about you,but your balls must be made from iron to do it. it may work for ETF's like QQQ since they probably not going to zero,but-it can take a while, before you get even on it. unless-there is some more rules and money management involved.

 

[hoodooman]

I trade this strategy with the rydex mutual funds. So far I haven't had more than 2 consecutive losers.

 

[T-REX]

Quote from Bob111:

man..you just don't get it...besides trending market i mentioned housewifes for purpose-that exactly what most of them do-they trying to average down losers and keep doing it till they lost their profits and then-their savings.
generally-it is VERY bad idea to average down. specially-double,triple. i dont know much about you,but your balls must be made from iron to do it. it may work for ETF's like QQQ since they probably not going to zero,but-it can take a while, before you get even on it. unless-there is some more rules and money management involved.

Not so fast dude.

This averaging down method DOES work on an intraday timeframe hence the martingale theory. There is a system being traded right now that does exactly this. It averages down to a maximum of 16 contracts on futures but the parameters can be adjusted to a maximum of 8 contracts. The system works well on Bonds and Euro but requires a $60-$100k account to start with.

.....and NO I'm not a vendor nor paid endorser of the above mentioned product.

 

[T-REX]

Quote from hoodooman:

I trade this strategy with the rydex mutual funds. So far I haven't had more than 2 consecutive losers.

The trader who sits right across from me trades this strategy and there have been days that he has lost anywhere from $5-$16k! on any given day.

Also the system is not a trend following system and therefore will fail during trending market conditions.

 

[hoodooman]

As I said, I haven't been trading it long. But If I had 8 to 16 consecutive losers, the bull funds would be going in in the toilet and the bear funds would be taking over. Hope you know what I mean about bull and bear rydex funds.
Thanks for the replies. I'm still optimistic.

 

[MrJohnGalt]

Quote from hoodooman:

As I said, I haven't been trading it long. But If I had 8 to 16 consecutive losers, the bull funds would be going in in the toilet and the bear funds would be taking over. Hope you know what I mean about bull and bear rydex funds.
Thanks for the replies. I'm still optimistic.

:eek:

optimistic?

With system performance?

:eek:

 

[Bob111]

Quote from T-REX:

Not so fast dude.

This averaging down method DOES work on an intraday timeframe hence the martingale theory.

the guy was not talking about intraday. he was talking about double and triple position size in losing position with rydex funds(which already have some leverage like x2)

couple years ago i was trading pairs in intraday and averaging is key method to make money fast there..but here is different story

 

[T-REX]

Quote from Bob111:

the guy was not talking about intraday. he was talking about double and triple position size in losing position with rydex funds(which already have some leverage like x2)

couple years ago i was trading pairs in intraday and averaging is key method to make money fast there..but here is different story

Oh o.k. BUT............

"Also, the system is not a trend following system and therefore will fail during trending market conditions".

the fact still stands.

intraday or not.:eek:

T-REX

 

[ElectricSavant]

Once your in, if the stochastics takes you out and the ma's go under, you do not doube down?

Michael B.

Quote from hoodooman:

I only trade when moving averages are uncrossed. This keeps me in when market is rising and out when the trend changes