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RE: How NOT to Lose a Single Trade Using Dollar Cost Averaging
I guess your assumptions are correct as long as you have unlimited funds and can continue to buy new lows. At some point you run out of money and no methodology can save you. And for a product that continues to see downward trends with not a lot of positive news later you need more than this.
If your initial investment is 10$ you can double down and hold against 20% drop. Since you are trading 5min candles, there won’t be a 20% decline without 3-5% reversal and that’s when you get out.
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