negative progression on the stockmarket?

OK, so we all know that progression systems cant give you a real advantage
on blackjack, but what about the stockmarket? In black jack if you lose 5 hands in a row it has negligable influence on you EV for your 6th hand. However if a bluechip stock has been down in the last 5 months, doesnt that
have some influence on its peformance in the 6th? I would assume that the probability of a positive performance is increased. One can then design a betting system based on this.
There are probably better ways to play the stockmarket, but this seems relatively easy and I think it would on average outperform the market.

But you still might go broke waiting for a positive swing. If you are doubling your investments instead of investing proportionally then you will most likely go broke even though you have an advantage.

-Sonny-

It is difficult to calculate your advantage on a single stock, hence the importance of diversification. Making a regular interval contribution to an index such as the QQQQ or SPDR avoids this, but the important thing to consider is making the contribution in intervals, not doubling your contribution each time value goes up or down like a progression. Remember when the Nasdaq was at 5000? or Black Monday?. Those are the events that would wipe out your savings if you're not diversified and investing proportionally.
BW

I'm not necessairily suggesting doubling your bet on a single stock with every movement, but perhaps a plan where you steadily increase your bet as it falls. Also, of course, diversifying is an obvious must.

Pick 25 investments as diviserfied as possible, invest say 2% of your portfolio in each, keep the rest in cash, shortterm t-bills. Pick blue chip investments, ones that are in all probability gonna be here 10,20, 100 years from now. When one of your investments is falling, steadily pump more into it, up to say 15% of your portfolio max, if it goes back up again reduce back to 2%. Repeat. You can of course invest more than 100% of your portfolio total by leveraging, but put a total cap of 200% total invested.

I would disagree. Look at IBM, Ford, Microsoft, GM, or Yahoo. These are all big names that are worth less today then they were seven years ago, and in some cases more then 10 years ago. If you kept pumping increased money into these stocks on the way down you would be long behind the guy who just put a regular contribution into an index fund. You don't have to run computer sims on these things, test your system against past performance of the stock market. You will be hard pressed to come up with any progression system on a blue chip that outperformed the index over a 10 year period unless you chose your stock based on knowledge that was unavailable when the stock would have been purchased. Play the market like you play BJ, grind out consistent small wins over time.... Unless you have insider info, that is like betting on a hand to which you already know the outcome before it is dealt.
BW

You might be right... I once come across a quote "everybody has an idea to get rich that will not work" this could be yet another of those.
If I ever try this strategy seriously I'd have to run some computer simulations first. If anybody wants to run such a simulation pls tell me the results.