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I like that!

Ri-aaa-ight!

Look, if you buy additional shares (contracts) you make your average price worse. Therefore, you reduce your chances to lock the profits unless the security you are trading keeps on going in the same direction. The longer you are in the trend the greater is a chance of the trend's reversal. So...

Exactly! That is why all of our traders are advised to "rethink" the entries rather than simply add to them. This way you would have a better capital usage and very tolerable drawdowns.

You are very observant. Yes, we did conclude it from the short term trading stand point of view.

We have tested a wide verity of entry logics. I did not say that pyramiding does not work. It simply has less efficiency then reentry techniques.

I'm not sure, let me ask him.

We have a staff scientist in our company that was assigned to this task. He used quite sophisticated tools and spent about half a year testing diff. pyramiding strategies. We needed it for our own fund. His recommendations were: 1. Do not pyramid 2. Do not average.

Hi there, long time since we talked. I had to change my alias due to my personal conflict with baron, oh, well ... Anyway, if it helps, I could tell you that we have tested Pyramiding versus non-pyramiding in our office using more than 50 diff. trending algorithms. The results were showing...

http://www.elitetrader.com/vb/showthread.php?s=&threadid=26829

jodi, I have princessPI email address. I'll ask her permission and send you her address (if you are interested) via PM.

Yes, the alias is correct, I checked. She is also a very cool lady.

PrincessPI is a good trader (If I got her alias correctly).