The end result would the same if we both lost. Actually, you'd need 2 units to risk the same as me. ($375) But, the odds of me winning a 1-1 ratio trade before you are higher. It's much easier to catch a 5 tick move than a 15 tick.
BTW: Thanks for posting questions in my thread. Good debate causes a man to put his thinking cap on!
Last edited by Jugador; August 19th, 2009 at 04:11 PM.
Hey guys, I know this thread is a little old, but I ran into an interesting article today that explains better what I was trying to get at in post #18 of this thread. There's a nice little chart accompanying the article.
The article basically corroborates my belief that there is a big difference in "averaging down" and "averaging in" as part of a trade idea.
This style of trading still may not be your cup of tea, but some of the scalpers here may find it interesting.