Averaging down a losing position in a mean reverting situation

[robster970]

I use MP with a view of each day to inform me of where buyers/sellers might be loitering. Outside of that it is 30m chart, 1m chart, DOM/T&S for intraday. It's more like FT71 with a hint of John Grady thrown in with me oscillating between the 1m to identify a change and then DOM/T&S to confirm and work a good entry price.

Ultimately it distills to your list.

 

[robster970]

Traded with the opening swing down today, looking for the break of 53. Went short 52.50 after buyers didn't show up, got out 50.50 when the buyers turned up. Good thing about the OS is that it is basically advertising for counter-parties to trade with and you only need a couple of minutes of it with nobody turning up to get the vibe that once a key level goes, there might be some momentum to carry you through to some nice $$$

No averaging today, many of you will be pleased to hear.

e2a - Jesus I nailed that exit. That doesn't happen like that too often.

 

[DionysusToast]

kewl - my daughter is ill right now. Hand Foot & Mouth - not to be confused with the UK Farm Foot & Mouth.

Anyway - no sleep for ages, let the wife escape this afternoon and endured the crying.

Wife came back with 4x500ml cans of amber necter. Needless to say, as much as I know I shouldn't, I still am....

 

[robster970]

All our secrets are coming out. You frequent chat rooms on the sly, I have a SB gambling account.

I average down and now you are condoning trading under the influence whilst sleep deprived.

Anybody else want to 'fess up any sins or dirty little secrets? Consider how cathartic it could be. You know you are amongst friends at Traders Anonymous. It's the first step on the road to recovery......

 

[darktone]

fess up any sins or dirty little secrets?

Does scalping in a gimp suit count!?

 

[robster970]

Does scalping in a gimp suit count!?

Isn't that normal? :whistling

Darktone, you are forgiven.

 

[ZEN archer]

Winning high percentage of trades by averaging gives one a false impression about their ability. I found it highly addictive especially once I've doubled my account in less than a month.

Eventually I would enter trades whichever way and kept adding. At some point lost touch with reality and hated when the price wouldn't give me a chance to add more.

And then, one day the price kept going up and up and I kept adding (to the short) and adding...

It was painful and beneficial at the same time - I decided not to do it any more. Well I couldn't anyway as the account shrunk a bit.

 

[DionysusToast]

All our secrets are coming out. You frequent chat rooms on the sly, I have a SB gambling account.

I average down and now you are condoning trading under the influence whilst sleep deprived.

Anybody else want to 'fess up any sins or dirty little secrets? Consider how cathartic it could be. You know you are amongst friends at Traders Anonymous. It's the first step on the road to recovery......

Full confession - I'm off 2 bed...

I think the 'Tipsy Trades' are fairly evident.

hic..

 

[robster970]

One of the main psych problems I have Zen is that I have a high win% (intraday) without averaging. I get used to this and then every now and again when I take a loser, I don't always take it quite so gracefully. Yesterday was an extreme example of this. It is part of the baggage I chose to take on when I decided to become discretionary. Managing performance is primarily where most of my energy goes. It's a big overhead but the payoff is worth it IMO.

 

[robster970]

Full confession - I'm off 2 bed...

I think the 'Tipsy Trades' are fairly evident.

hic..

DT you are forgiven of your tipsy trading sins.

 

[DionysusToast]

One of the main psych problems I have Zen is that I have a high win% (intraday) without averaging. I get used to this and then every now and again when I take a loser, I don't always take it quite so gracefully. Yesterday was an extreme example of this. It is part of the baggage I chose to take on when I decided to become discretionary. Managing performance is primarily where most of my energy goes. It's a big overhead but the payoff is worth it IMO.

We all have our issues with trading.

I think better to live with them than to try to correct everything.

Maybe some of those 'issues' are also responsible for your profits.

 

[barjon]

.................. every now and again when I take a loser, I don't always take it quite so gracefully....................

Rob

Aye, you and me both. That's really what I was getting at in my earlier post when I talked about your "crime" being more about moving the stoploss on your first trade rather than about the addition.

jon

 

[robster970]

Rob

Aye, you and me both. That's really what I was getting at in my earlier post when I talked about your "crime" being more about moving the stoploss on your first trade rather than about the addition.

jon

I know Jon, I know.

 

[VielGeld]

This is a good thread. Lots of good threads recently, everyone spilling their beans. Om nom nom.

Dirty secrets? Don't have one, though I suspect my God complex, imagination, and recent propensity at drinking more than usual will give me one down the line.

 

[MoonRocket]

Anybody else want to 'fess up any sins or dirty little secrets? Consider how cathartic it could be.

Extreme anger, very, very rare for me....maybe less then ten times in my entire life.
But the other day I was keen to get to the trading screen. I like to be at it by 4.30, 5pm at the latest. Got held up on my job and didn't get home till 7pm and was tired.
Flicked on the computer hit a trade immediately, went into a loss, said stuff it and hung on. Got out much too late. Hit it again feeling even angrier, even bigger loss.
Than began hitting a stack of trades but getting out on fractions short of break evens.
Realised I was self destructing so went to bed at 9.30.
Heard of anger working for some but definately not for me.
Shall never do it again.

 

[robster970]

Extreme anger, very, very rare for me....maybe less then ten times in my entire life.
But the other day I was keen to get to the trading screen. I like to be at it by 4.30, 5pm at the latest. Got held up on my job and didn't get home till 7pm and was tired.
Flicked on the computer hit a trade immediately, went into a loss, said stuff it and hung on. Got out much too late. Hit it again feeling even angrier, even bigger loss.
Than began hitting a stack of trades but getting out on fractions short of break evens.
Realised I was self destructing so went to bed at 9.30.
Heard of anger working for some but definately not for me.
Shall never do it again.

Your angry behaviour is absolved my child.

 

[DionysusToast]

Your angry behaviour is absolved my child.

who's the poofter in the pink dress?

 

[robster970]

Apparently he is called Bishop John but that's all I care to know about him. I selected the image because it was suitably naff.

 

[new_trader]

 

[robster970]

Excellent work NT - and he's trading some size I see too!

I am going to systematically replace the other images with this one - the penance of 2 contracts long is perfect for absolving a multitude of trader sins.