Rule-Based Trading Systems

[KovuLK]

All re: regression to trendline & scaling in


capt_jmj says in part:
over time we will regress to the blue trendline shown on the graph in the iBox
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Which means...I said, which means...look at me in my eyes...stop thinking about anything else...that IF you are scaling in you should be careful. By scaling in I mean that on each buy/short you increase the amount invested. Why to take care? You could finally get into a maximum amount you want/can invest on a particular trade and then it goes bad taking back much of your 'scaled in' gains. This happened to me once upon a time. Not fun.

Thanks
kovu