Increasing size on a loosing position

Heres what happens when you use the increasing strategy too often


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Love it

Pete

Look , a system is a system is a system.
Sometimes buying cheaper will help, sometimes it won´t.
The worst is to sell parts when in profit, like after some profit cash 20 %, then another 20%, then the rest...etc...
Why?

The golden rule is: keep ypour winners big and loosers small.
By downscaling you make sure your winners are small, and the loosers hit you with the full load.

Try this: find 3 to 5 different triggers, around your support level, enter each one as they show...
If the trade goes your way, chances are by the time the trend is established you will be fully loaded, then trail your favourite stop on the whole pack.

If the trade goes a little your way, and you get stopped, chances are you will get hit with 1, maybe 2, maybe 3, seldom with everything!!! Even then your stop moved your way, so it should be tolerable...
Thus you get hurt much less!!!

Just do the math...
Problem is the fixed lots...I trade Oanda, so every position has an exact same size to the stop, I trade always 5 positions.
My average winner is always 5 positions, my average looser is less the 2,5 postions!!!

So that already gives you and edge, no matter what system.
You need to carefully study the math... keep it simple, always the same triggers, always the same exit...
30 Trades should give you a minimum sample size, after 100 trades you know better...
You may add below, you may add on top, depending on your system, mine does both...and it´s profitable...

We all just need to pay attention...whenever you decide to downscale your system`exits, remember the math works against you...imagine a boxer getting hit by 5 punches insted of 1 or 2.
You want to be the one hitting the other side with 5 punches, at the end of your system´s close signal!!!
It´s in the detail...the edge exists, but mistakes will balance it towards the other side...

Enjoy life...