This method seems exciting and promising at first sight, but there is just that warning bell telling me it will become very painful in the long run. It just goes against the general good trading axioms - don't average down and trade with the trend. This method averages down and trades against the trend. Sure you will have a lot of winning days at first, but there will be that one day when it will not reverse for a very long time and you will end up losing and giving back all your gains and some. Do people still remember the CHF debacle earlier this year!