is martingale "double down" approach reasonable?

NexusFi · 2012-07-28T15:21:36-04:00

it is reasonable until it became unreasonable. Maybe an extremely disciplined and experienced retail trader could use it with a very small percentage of risk and a well defined and followed stoploss plan for when the doubling-down fails. Maybe a few do it successfully. Unfortunately it's very habit-forming and creates a tough temptation to ignore when in a losing trade if done too often so probably best to never do it, or if having done it , learn from the losses and train away from the habit by sticking …

Discussion in Traders Hideout

Updated July 28, 2012

is martingale "double down" approach reasonable?

July 28th, 2012, 03:21 PM

#11 (permalink)

heywally

Pismo Beach CA

Elite Member

Experience: Intermediate

Platform: TOS, IB, Fidelity for 'swing' trades

Trading: ES, NQ, IBB, IWM, NG

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A (much) more conservative approach might be doable - scale-in buy (in equal amounts though) -- large indexes only; SPY/ES, QQQ/NQ -- during (after) weakness, at support areas, up to a set and reasonable amount of total capital after more weakness. Wait for the inevitable ramps up, scale-out sell into strength. As usual, the timing is sometimes tough.