I found this very interesting article (click or copy&paste this link >>> http://www.investopedia.com/universi...fiveminute.asp) on investopedia which tries to eliminate any prediction from long-term investment, cutting losses, and letting profits run. Also, this article describes various stock market myths and words of wisdom. It is a very lengthy article. If you are running short of time, then just check:
Chapter 4: Stock Picking
Chapter 6: The World's Worst Trading Strategy
Chapter 7: The Reverse Scale Strategy
Chapter 8: Margin Power

OR you can directly check
Chapter 9: Implementing the Reverse Scale Strategy


Now, the questions I would like to put forward are:
1. How effective do you consider this strategy?
2. How can be this strategy altered to suite Indian context?
3. Is there any testing methodology you can suggest?

I would request senior members to put their views.

Thanks