20190325
Long 1 YM 25566, -7
Long 1 YM 25567, -7
Long 1 YM 25536, -7
Long 2 YM 25520, -7, -7
Long 2 NQ 7335.5, 7335.5, -2.25, -2.25
Long 3 YM 25510, 25510, 25510, -7, -7, -7
Long 3 NQ 7309.5, 7309.5, 7309.5, -2.25, -2.25, -2.25
Long 4 NQ 7306.0, 7306.0, 7306.0, 7306.0,, +11.0, +11.0, +11.0, -0.25
Long 4 YM 25429, 25429, 25429, 25429, +20, +20, +45, -5
Long 2 YM 25415, 25415, +20, +20
Long 2 RTY 1498.5, 1498.3, +1.0, +1.2
Short 2 YM 25481, 25480, -7, -7
Short 3 YM 25493, 25493, 25493, +10, +20, +30
Short 1 NQ 7346.5, -2.25
Short 2 NQ 7349.0, 7347.75, +9.5, +3.0
Short 1 RTY 1512.0, +2.0
Total YM +130
Total NQ +31.75
Total RTY +4.2
Anyone who has ever seriously applied the Martingale betting strategy at gambling tables knows that it does NOT work. That is, there is really no better odds after a succession of losing trades extended into an unusual streak than on the very first bet at the beginning. Card counting in Blackjack abates this phenomenon somewhat, as a deck is depleted of some of its cards, but much of that is nullified by multi-deck shoes, and reduced payouts. But the market is different. The market has a property of elasticity, of return-to-median, of reversal-after-climax that long streaks in gaming tables simply do not have. And with the added tools of Sequent Algorithm, TrueTrend Momentum and an Exhaustion Grid instead of a Support-Resistance Grid, the odds of identify the better entry zones INCREASE with the extended and super extended price stretch. Couple that with the market's propensity to Test-n-Reject the initial trends of the day some 80% of all days (as opposed to an initial Persistent Trend right out of the Opening) and adding to your initial bet size as price extends further into a climax zone and the chances of successful entries improves dramatically. Thus the reason for building the bet size after smaller losses when such zones are further stretched to extremes. You cannot predict when such trend climaxes are extended, you can only prepare for them when they do by actions pre-defined in a prescriptive Trade Plan when they arrive. Or as my mentor Randolph Newman liked to say to me, "Position yourself to be surprised."
You can read about the components of the Pivot ExHaustion Grid in the book Pivots, Patterns and Intraday Swing Trades, Wiley Publishing, Amazon.com:
https://www.amazon.com/Pivots-Patterns-Intraday-Swing-Trades-ebook/dp/B00F2JFUKE/ref=pd_sim_351_1/145-0310788-1568116?_encoding=UTF8&pd_rd_i=B00F2JFUKE&pd_rd_r=1e30522e-4f28-11e9-87d1-757066f180d6&pd_rd_w=DjmN0&pd_rd_wg=WhPAq&pf_rd_p=90485860-83e9-4fd9-b838-b28a9b7fda30&pf_rd_r=EBEDK4FHCJWVB49TCRGN&psc=1&refRID=EBEDK4FHCJWVB49TCRGN
And a book on the mental game of trading, titled True Self, can be found here:
https://www.amazon.com/True-Self-identify-pitfalls-decision-ebook/dp/B075KYS6LJ/ref=sr_1_fkmrnull_1?keywords=True+Self%2C+Will+Scheier&qid=1553536927&s=books&sr=1-1-fkmrnull
