thread: Averaging when already In the RED....

The important thing is planning. If averaging matches into your strategy then its fine. If you took an preliminary position, then only average to try to escape a loser, risking more than you intended, you may encounter an outlier which can wipe you out. You always have a stop, however you're trading momentum and directional ranges rather than precise price points.

Roland has a lot of small winners (1 percent ) (likely 75-80percent ), an occasional bigger loser(3-5percent ), and a few bigger winners (3-5percent ). Large winners occur a lot more often than losers. The concept is to forecast where price will end up and then typical in until it hits on your target and then dump it.

Hi,

simply to illue the scaling-in procedure (or averaging-in) more to the point of this thread.

The usd/chf position was discontinued out for a profit, so has the usd/cad position. The position that has survived with a total of 4 most profitable longs on a stop is eur/usd. This one has the potential to run till the close of the week.

Either way, two% profit have been locked in to the week (and this week was not too active concerning trending moves).

regards

95012 The trailing stop for all eur/usd long positions now moved further in our favor - and original retracement allows to identify new short term uptrend.

New TL as a step to move stops together - till it turns again.

regards

95011

The trailing stop for most eur/usd long positions now moved further in our favour - and first retracement allows to recognize new short-term uptrend.

New TL as a step to move stops along - till it turns again.

Regards
daytrading

Its nice to get a look In on how you trade DT, Ive never realy read any mention by you about your method of trading earlier.

950111 Structure (s) Hi Leon,

many ways lead to Rome. It's among the egies accessible to trade - there are far more in the tool box; a few a few that are short long-term.

Closed the bulk 300 (having an entrance avg. At 1.2945), which brings the week to more than 5% - need to cut the grass for the next 3-4 hours since rain has been guaranteed for the weekend.

regards

95011

Hi Leon,

many ways lead to Rome. It's among those egies accessible to trade - you will find more in the tool box; a few a few long-term.

Closed the majority 300 (having an entry avg. In 1.2945), which attracts the week to more than 5% - need to cut the grass for the next 3-4 hours because rain was promised for the weekend.

Regards
daytrading

This was a very nice trade mate.

Just from curiosity(on EU), at what price and time was the 1st Buy made and which of those Buys were created while price was climbing? Im hoping to get an idea of the commerce developed.

Leon

EDIT: Middle, highest, lowest (order of Buys made)? If that's the case, had you intended to average further down If price continued? Regardless, once the combination of transactions had attained (or was getting nearer ) to a risk barrier, would you move to scale from the losing possitions biggest loss 1st or close all at once??

Hope Im not being too nosey.

95011

I am no expert, but this man apparently created a few quid.

Losers average losers. Well said, PTJ said!

95011

That was a really nice trade partner.

Just out of curiosity(on EU), at what price and time was the 1st Buy made and that of those Buys were made while price was rising? Im just hoping to get an idea of how the trade developed.

Leon

EDIT: Middle, highest, lowest (order of Buys made)? If that's the case, had you intended to average down If price lasted? Regardless, once the combination of trades had attained (or was getting closer) to your risk barrier, do you move to scale out of the losing possitions largest loss 1st or shut all at once??

Hope...

Hi Leon,

1st buy EU on 21st at 07:54 @ 1.2946
2nd buy EU on 21st at 13:03 @ 1.2915
3rd buy EU on 21st at 14:12 @ 1.2975

I had one further buy limit at 1.2885 whether it would have gotten there since the previous days low was 1.2886.

The 3rd buy at 1.2975 was a buy-stop. If the buy limit at 1.2885 could have been triggered, I doubt that the 3rd buy would have been triggered - rather I feel the price would have found new highs first. If that's the case, I'd have experienced a position average at approximately 1.2915 (rather than 1.2945). I'd have figured out service and bought enough to average the price down from 1.2915 to where I feel it might retrace back to damage limitation. Then exit and regroup.

Unless a whole sudden massive event strikes the news, and I am not talking about scheduled daily releases, so you may always expect the price to retrace to a certain amount after discovering a new low/high. That provides the chance to get out at a greater than expected level on a trade that is failed.

regards

95011This thread is clearing up the subject of scaled trading for me.

Many thanks Superdezign, Daytrading and Leon!

95011

Losers average losers. Well stated, PTJ, nicely said!

Dear CateFul,

Before taking sides with what looks to me like a very broad generalization, maybe it wouldn't be such a bad idea to consider the next points/questions.

What according to Paul Tudor Jones (the man in the film ) represents a'loser' may not be the simple fact that the price is only moving into the opposite direction following the traders entrance. In reality, how many traders can say that each of their positions always and straight after entrance goes positive?

Secondly, when the trader has a position that leaves him room to increase (i.e. his/her initial position is merely a fifth of his/her intended general size), while he's got a 100 pip stop (for instance ) and this position is let's say in the negative by 50 pips but the price on the chart is creating a higher low (based on the low which his 100 pip stop is based on), then the position wouldn't always be a loser - and also the trader could increase his position based on the notion that the new high reduced is an affirmation of his/her original position (or assumption of his first trade idea).

To prove my point, here is a quote from Paul Tudor Jones' meeting with Jack Schwager in the Market Wizards book. Page 123:....and I had been buying it every time it came down to the very low end of that range.

His buy orders were at different levels - some above, some below his very first buy....but all above a degree he'd certainly get out (if it go that low).

When a commerce becomes a'loser' is a really subjective matter based on your type of trading, in your position size(s) and your capital vs. the time frame you exchange also. What about a 15min TF may look like a losing exchange for a single trader, is a minor retracement onto a chart for a different - that may just add a little position.

regards