I'm sure everyone has heard "never average down" and "dont trade 2x your last trade on a loss", but many systems are coming out lately that use these money management techniques to product wins.
The 2 most notable are Firebird (averaging down) and Hedgehog (martingale). If you test these systems with out the money management component they are average to less then average IMHO. The produce less then 33% wins, but the money management systems make them win in the long run.
It seems that this would give credit to these 2 money management techniques. Would if you added these to a viable trade system (60%+ winrate), would this actually work?
From testing these systems i find they work well until something goes totally wrong and takes out 1/2 your account. but if you make more then you lose are you winning?
The 2 most notable are Firebird (averaging down) and Hedgehog (martingale). If you test these systems with out the money management component they are average to less then average IMHO. The produce less then 33% wins, but the money management systems make them win in the long run.
It seems that this would give credit to these 2 money management techniques. Would if you added these to a viable trade system (60%+ winrate), would this actually work?
From testing these systems i find they work well until something goes totally wrong and takes out 1/2 your account. but if you make more then you lose are you winning?