Average price is a technique where the Trader starts a trade and if it is against, adds more lots. Usually doubling the previous value (1, 2, 4, 8, 16, 32 etc.). In this way, the addition of contracts occurs until the trading becomes positive, at which point the Trader will make a profit. We work at our average price to defend the position, but there are some differences between the techniques. When defending the position, we already know the entry points, Stop and the possible target before we actually start the operation. In addition, in position defense, an average price is set to manage the Trader. Our goal is always to improve our position, and thus optimize profits and minimize possible losses. In Average price, the opposite occurs, the more the operation is carried out, the more we increase the exposure. In other words, this is an extremely risky approach.
Average price may work. However, if we don't set a stop, our entire account can be the limit, and the end.
A properly defended position strategy has a high success rate. This means that, if used well, it will be a winner. It is not as reliable as any other strategy. This or that strategy must be implemented with perfect risk management. A management to be followed with discipline, day by day, we cannot give the market the possibility of catching us.