DislikedHello all, I am trying at the moment a strategy that actually uses no SL. Negative trades I try to average out or maritingale either to BE or a smaller loss. My experience so far (3 months. 130 trades, dailys) is split: I have serious gains, more than I ever had before with any other strategy, in fact it is the first time I ever win, but at the same time I also had serious drawdowns which almost wiped out my account. It was pure luck that they did not. So for the future I will take smaller lots. My question now: Is there anyone of you who trades...Ignored
The reason why there are traders who seem to be trading this method successfully over years is simple: Survivorship bias. How many fail for every one that succeeds for a little while? Even those that get lucky for a few months or even years are bound to blow up. The risk profile of this approach is similar to selling naked options: You collect steady profits for a while until you take a big loss. This happens in the hedge fund industry all the time and all the while the fund managers are celebrated as geniuses until the big crash comes.