building a pyramid intraday

[heilbronner]

I know i have to take my losses quick. In order to make big money you have to pyramid, but on a intraday basis in NQ it is really difficult to do so for me, because of fear.

Anybody pyramiding in NQ intraday? If so, what is your rule for adding additional contracts?

 

[Kermit]

heilbronner:

I will only attempt to pyramid if there is an intra-day trend in force (like the ones on 3/13 or 3/17). Using at least 2 time frames, I would identify my pattern(s), ascertain their targets and pyramid my way up to the target with either smaller or even lot-size increments each time. How much to put on would obviously depend on your account size and risk parameters of your system. So for instance, I can implement a 4+2+1 pyramid or 2+2+2+1 (I call this my “obelisk” scheme). Sometimes the market moves in such a way that it doesn’t offer me a chance to pyramid additional lots after my base position is on and just moves to the target. But once the pyramid starts to grow, I would also start to tighten my trailing stop behind it. If the market trips my stop, the entire 7-lot position in my example would be taken off.

Kermit

 

[heilbronner]

Hi kermit,

...if there is an intra-day trend in force...

How do you identify one?

If NQ is up or down more than 2% or 20 points just in one direction?
Or do you start earlier to add lots?

 

[Kermit]

Quote from heilbronner:

Hi kermit,

...if there is an intra-day trend in force...

How do you identify one?

If NQ is up or down more than 2% or 20 points just in one direction?
Or do you start earlier to add lots?

I look at the channel lines drawn on both my large and smaller time frames to quickly identify the trend. Pattern setups (flag formations for me) on the smaller scale chart serve as good jumping points to add lots.

Kermit