E-book by Richard Olsen: How to Trade -
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thread: E-book by Richard Olsen: How to Trade

  1. #11
    Junior Member CarPattney's Avatar
    26
    This E-Book suggests that if you are in a losing position you should Add to this postion and 'Double Down.' THIS WILL GET YOU KILLED!!!!!!!!!!!!!!!! I can't emphasise it enough. You'd do better to buy and read Jason Jankovsky's Trading Rules which work.
    It doesn't really say that. Let's say you are prepared to risk 1 percent of your equity on a single pair and you break that risk down into three smaller portions of .33% risk each. You're able to average down in a way where you are still only risking 1 percent of your equity total whilst bettering your overall position.

    It's quite different from averaging since many traders do would be an interesting concept in case your system can er to it.

  2. #12
    Senior Member Tataylo's Avatar
    435
    quote It does not really say that. Let's say you're willing to risk 1% of your equity on one pair and you split that risk down into 3 smaller portions of .33% risk each. You can average down in a way where you're still only risking 1% of your equity total whilst boosting your general position. It's rather different from averaging down as many traders do would be an interesting concept in case your system can appeal to it.
    That was the way that I read that, also.

    Nevertheless, I'm still not a huge fan of averaging down. Two reasons, just off the top of my mind:

    1. It all effectively achieves (as the name suggests) is the exact same one entry at a mean price. Everything else being equal, then, if you were to simply enter at that typical price, then over a fantastic many trades you'd be better off 50% of this time, and worse off 50% of this time. Hence averaging down may smooth return, over the short term; but over the long run, it does not really provide an edge in itself.

    2. Suppose we typical down with 3 lots, entering 1 lot at each of the 3 equally spaced measures:
    In the case of a profitable commerce, we will reach profit with 1 lot approx 33 percent of the time; together with two lots, approx 33 percent of the time; and with the entire 3 lots, approx 33 percent of that time.
    But in the instance of a losing transaction, we will always get stopped out with the entire 3 lots.
    Admittedly about the occasions once we do get the 'triple' entry without being stopped outside, the higher RR of this last additional place stinks for this, but I prefer just one entry. Each to their own, I figure.

  3. #13
    Junior Member Vitali0n's Avatar
    16
    Is it really so harmful this e-book?
    Thanks.

  4. #14
    Is it really so harmful this e-book? Thanks.
    Yes, if you read it you'll find a margin call.





    So, do not do that.

  5. #15
    Junior Member Castlewhite's Avatar
    28
    1,233 accounts Obtained a blow up

  6. #16
    Junior Member ammx171's Avatar
    23
    quote Yes, even in case you read it you'll get a margin call. Don't do this.
    LOL. Nice one mate

  7. #17
    Do I need to pay to see it?
    I'm not good at using the internet.
    I'm learning right now.
    My very first post on cliqforex.com
    I'm part of a project, funded by the authorities, to support people like me,
    I have studying disability, multiple sclerosis, incipient blindness.
    If I know to trade, from cliqforex.com (remain on the webpage),
    possibly I will ask them for funds.
    Just how much you need me to pay for the book?
    I can not afford more than $1.5 for today.
    Is it feasible to lease it, my older sister asks?

  8. #18
    Junior Member Oxnzanares's Avatar
    21
    This E-Book suggests that if you're in a losing place you should Add to this postion and 'Double Down' THIS WILL GET YOU KILLED!!!!!!!!!!!!!!!! I cannot emphasise it enough. You'd do better to buy and read Jason Jankovsky's Trading Rules that Work.
    Really? Huh...
    I can't believe someone would actually think that's a Fantastic idea :/

  9. #19
    GREAT read. . THKS

  10. #20
    Junior Member irch's Avatar
    21
    Bumped for the new crop of rookies coming in who desires books to read.

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