Forex trading strategies - bunny cross, woodies cci, 10 pips a day

I think people are having far too rigid opinions here. Also people automatically assume that scaling/averaging down means something that it does not necessarely mean i.e. the kind of action that the starter of the thread described.

If done as a part of a good trading plan which definately has a stop loss point and good money management (neither of which the thread starter seemed to have) scaling in when price moves against you is a very viable option when doing fade trades and does not increase risk at all.

In my trading when doing fade trades (by which I mean fading the most immediate price action) I sometimes scale in. I have a “price window” of x ticks inside of which I do the scaling and a definite stop loss few ticks outside the price window. So if I trade for example 3 lots I take the 3 lots at 3 different prices one lot at the time as the price moves against my position inside the price window instead of taking 3 lots at one price, such as at the midle of the window.

There is no more risk in this compared to taking the whole lot at a single price.

I think the key differences are: Having a definite stop loss and not exceeding your intended trade size (i.e. you scale INTO your intended size, you dont “average” a trade that allready is at your intended size).
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I agree with Albert. If you still believe you want to average into a position it would be in your best interest to become a systematic trader. You could still use your discretion to pick your entry time/point. Then you must allow your ats(automatic trading system) to take over. I believe this is the only way you will not self destruct.

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