Let me give a basic example of going against what is on every trading 'do not' rule list, averaging down.
On the left are examples of a pull back scenario, on the right a range trading scenario.
Averaging down (Bottom examples) Using stops (Top examples). GREEN=entry RED=exit
Obviously if they they go our way the result is the same, win. If we are wrong or timing off the examples in the picture can occur.
A large % of the time you can still catch a good trade if your timing is off and scratch/small win/small loss a trade if you are wrong
Obviously there are the times there is no bounce, so there has to be an uncle point. But i think i overall a good trader will make more averaging than stopping out.
I think if people tried this they would be surprised at the results. I have found that the winning piles up so much it more than makes up for the occasions when the daily stop is smoked
Would just like to add it would probably be better to use a position size much smaller than your usual position size and only average up to, or less than your normal position size
For example if you trade 4 contracts, you could change to average down up to 3 times: 1 + 1 + 2 = 4.
Also a great way to practice trading because you will find you are trying to pick the tops and bottoms on your exits as well as your entries. Instead of exiting because your trade has gone against you x ticks, you exit because you think you are coming to the end of the wave/turn.