Averaging when already In the RED....

Ahh, I always forget about the simple part, Nothing but my bad memories fault that Im not a FT trader by now.

I build the trade in the same way of you, DayTrader, but in smaller TF, usually 15 min, and opening positions more closer to each other.
I open from 2 up to 10 positions, it depends on when the price goes in my favor, always considering the R%.
In this way the risk is distributed on more positions with less lots, rather than on a larger one.

Lubo.

...way to go if you want to capture a trend.

regards
daytrading

Another Big advantage I see Is that It reduces the chop problem that the 1 possition systems get hammered by.

..certainly - but don't be fooled, a trade can still go belly up and when that happens, overall risk parameters have to be respected.

regards
daytrading

Im certainly going to think On this alot more, Ive got work today and tomorrow so wont be able to trade things and see how I go but Im going to put aside afew hours on Sunday to trade as many months as I can on Forex tester.

I feel like Im getting close to a Burn-out again though, . Maby I need a forum/forex break, come back and see clearer kind of thing.

Thanks for your input on the thread DT.

Leon

My pleasure, Leon -

Try not to answer too many questions at once. Rather pick topics that relate to each other (for example trends and time frames) and build up your knowledge.

regards
daytrading

i do average down last time, doubled my account after 2 months, play 5 min charts,making over 500 positions in that 2 months, without a single lose.
then the moon turns blue, before i know what hit me.....

Yes, I can confirm that averaging into a trade will make you money. I use a strategy that I trade on the 1 H time frrame. I try to buy the market in the direction of the 4H and I average into my positions at key levels.

I do use stops, depending on the pair I am trading I will use 100 or 200 point stops. Big stops, but all my risk is calculated per point so that I never risk more than 3% on the complete trade.

I then average in the more the market goes against my original position, so initially I open 1 contract, at the next level I add another 2 contracts then finally 3. My stop is always at the same point in relationship to my first entry, so as I add more my stop gets smaller.

When the market turns round I usually take my profit at the close of the last swing depending on the direction I was trading. This usually gives me 75% winning trades. The losers will sting a little, but the high percentage of winners more then cover up the losses.

I use trend lines wave counting and pivots to trade off.

Good luck


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