Average Up as a Trading Strategy
The average up strategy provides Huge wins, Small losses and Risk minimized.
Use RANGE-CHART for this, so you could see the Buy setups more easily with less noise or time distortion.
First
You look for a buy setup, one that you believe that price should move rapidly from your starting buy point (you expect ab big relative move).
Second
You add up position. Every trader should use his own risk management based on his account size and what he is comfortable with,
BUT...
The position units you add have to be in the SAME SIZE! If they are not in the same size, the break-even point will not move up as I showed in the chart.
Side note: experience traders can play with the portions of the positions, so they can manipulate the break-even point as they wish...
In the first case on the chart (the idea was wrong), the position stopped out with 3 units of loss.
In the second case on the chart (the idea was right), the price from a certain point moved away from the break-even point,
which means that you were GREEN the whole time in the trade (when you had a relatively big position).
You had "AIR" to hold this huge position.
Many great traders used the average-up strategy: Jesse Livermore, Richard Wyckoff, Nicolas Darvas.
If you are right, you are right in the biggest position possible => you have a huge win of 45 UNITS.
if you are wrong, you are wrong in the small position => you have a small loss of 3 UNITS.
---------------------------------------------------------------------------------------------------------------------------
Bottom-line profit => 42 UNITS of profit $$$$
If you like this educational, let me know in the comments, and like it, so it will be saved on your liked ideas.
Use RANGE-CHART for this, so you could see the Buy setups more easily with less noise or time distortion.
First
You look for a buy setup, one that you believe that price should move rapidly from your starting buy point (you expect ab big relative move).
Second
You add up position. Every trader should use his own risk management based on his account size and what he is comfortable with,
BUT...
The position units you add have to be in the SAME SIZE! If they are not in the same size, the break-even point will not move up as I showed in the chart.
Side note: experience traders can play with the portions of the positions, so they can manipulate the break-even point as they wish...
In the first case on the chart (the idea was wrong), the position stopped out with 3 units of loss.
In the second case on the chart (the idea was right), the price from a certain point moved away from the break-even point,
which means that you were GREEN the whole time in the trade (when you had a relatively big position).
You had "AIR" to hold this huge position.
Many great traders used the average-up strategy: Jesse Livermore, Richard Wyckoff, Nicolas Darvas.
If you are right, you are right in the biggest position possible => you have a huge win of 45 UNITS.
if you are wrong, you are wrong in the small position => you have a small loss of 3 UNITS.
---------------------------------------------------------------------------------------------------------------------------
Bottom-line profit => 42 UNITS of profit $$$$
If you like this educational, let me know in the comments, and like it, so it will be saved on your liked ideas.
🏆 There is only #1 way to trading
🧪 Feel confident with science and logic
💰 Trade your way to success and freedom
🧪 Feel confident with science and logic
💰 Trade your way to success and freedom
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.