I have a new method I now use for the "averaging down" techniques used by some vendors. This is how I view ("normalize") their track record:
Definition: Anyone who normally trades about 6 to 10 contracts, but has some trades with 40 to 80 contracts is not "scaling in." They are averaging down to improve the track record.
1) Entry price = price of first trade.
2) Exit price = price of last trade
3) Ignore all explanations, gyrations or twists and turns used by vendor. (12 entries and 16 exits is also not "scaling in")
So, what do YOU use/do ???
1 Like
Ross
It’s very simple. 
Classical averaging down/up is based on multiply entries and one exit that is adjusted by average price of a position. It’s classic.
Scale in/out is different approach when trades are in general independed with one huge exception when trades cannot scale out. From the moment it become averaging down/up on exit from a position.
It’s very simple.
Eu
I should really keep quiet, because I had a mess of a day today.
I thought I was a Scaler, but I can see that I’m an Averager. Talking about this helps me deal with the pressure. As part of money management, I’ve got to do more Averaging out! That cost me big today. I had 2 trades that were up about 2pts, and I took a plus .25 stop on both…that blows! I’ve got voices in my head saying: " let winners run Jon",other voices say: “a winner is a winner Jon” some say: " don’t be a scalper Jon"…I think I’m gonna start Averaging Out darnit!..Jon …PS, I don’t even care anymore if the vultures come out and slam me, I try hard, and I work hard.
Not hard enough Jon, not hard enough…
Jon,
One of the many beauties of trading is that the trader is constantly learning something new.
Keep up the good work.
Paliun (what-ever his name is!) needs to address his systems many negative issues.
Thanks for the note Max. After many years of trading, I actually do learn something new everyday.
My buddy use to say; " how many times do you need to get kicked in the head to learn a lesson?" To me, thats how trading is. I can’t imagine such a thing as a perfect system or a perfect trader, but there are ways to make money, and I know a few of them. …Jon
Max Brown
One of the many beauties of trading is that the trader is constantly learning something new.
There is my favorite quote about trading from market wizards
“A slow sort of country!’ said the Queen. Now, here, you see, it takes all the running you can do, to keep in the same place.” ©
Jon Lechleidner
Relax. Ross remind me one runner on a floor. The guy knew everything about trading
Eu
I don’t understand the post.
My name is there, but those are not my words.
Is EU, the owner of Crawler?
I don’t want to sound arrogant, but please EU, don’t talk to me or use my name until the Crawler is profitable.
I don’t want to sound arrogant, but please EU, don’t talk to me or use my name until the Crawler is profitable.
Futures aren’t my area. I don’t understand it so far. I supported you and made some marketing for you when you was so alone baby, but my general idea of the competition was a fun and possibility to learn something from you. I learned, no doubts from my side. If you don’t like it, fuck off from me and go to your ivory tower of greatest futures trader. Am I clear?
Eu
