Imo, pyramiding is the only way to do it. You reward winners and don’t add to losers. Realistically you cannot trade 15 contracts on $4,500 unless you’re slowly building a position upon more and more success. Then you obviously need to know your target and keep your stops in place.
6 months TopStep 50K Net Profits
- Thread starter Sekiyo
- Start date
“Trade only when the market is clearly bullish or bearish”
Guess it’s the prerequisite for pyramiding.
Otherwise you’re taken out too often.
Like yesterday with the ES.
Very small and very few retraces.
Guess it’s the best environment to pyramid.
I am trying to incorporate it into my strategy.
But I have never really implemented it yet.
In poker it’s called tight agressive.
Get the best of it (Play the best hands)
And get the most of it (Agressive while ahead).
Min downside and max upside is the key anyway.
Volume wise (Frequency x Intensity).
Basically. Especially doing what you’re trying to do (which I think I may do too), you need the precision of a surgeon. Pyramiding helps offset that risk.
Patterns, fibs and pyramiding is pretty much my toolkit.
I think we don’t need more.
PA is the basis IMO.
Patterns in Price, Time and Volume.
Also use fibs but not the usual numbers ...
Anyway there is no magic I just use Fifths.
Have to implement pyramiding ^^
Wish you the best too.
Btw you linked to farnam Street in another section of this site. Thanks for that. Have been reading it the last few days.
You’re welcome.
It’s a great website.
They talk about mental models.
There are some books on the subject.
It’s tough but the the way we think has so much consequences.
So if one can improve his thinking,
Then one can improve his decisions.
You might also want to check this thread.
The bottom where I quote the poker book.
Found it quite useful even if it’s about poker.
https://www.elitetrader.com/et/threads/meet-the-experts-gianni-the-greek-sports-betting.342041/
I’ll have to check that out. Can’t throw an hour at it right now. If I have any idea though as to his thought process, the trend traders also made their money by bet size optimization.
