deluded demo trading: pyramiding

[stevegee58]

How did you come up with your pyramiding ratios?

I've seen adding equal sizes at fixed intervals as price moves in your direction. I've also seen adding decreasing sizes as prices moves in your direction.

 

[TGpop]

well, it's all about the average price i think.

if i just kept adding on the way up like 1 1 1 1 1 1 1 1 1 1 , my average price would be higher than 1 ,4 , 3, 2 (for longs). i like to have my final order filled at exactly half way, to give trade room and to make sure i don't get all in too quickly, this makes my average price about 1/3 from entry to target, which is good enough.

 

[stevegee58]

In my opinion you should be progressively *decreasing* your risk as you add, not increasing it.

Trailing the stop makes sense but you're not doing it systematically.

Also, you can be scaling out as price moves in your favor and then adding positions back as it continues.

Here's something Ed Seykota said about pyramiding:

http://www.seykota.com/tribe/pages/2003_Feb/index.htm#pyramiding

Just some food for thought.

 

[TGpop]

Quote from stevegee58:

In my opinion you should be progressively *decreasing* your risk as you add, not increasing it.

Trailing the stop makes sense but you're not doing it systematically.

Also, you can be scaling out as price moves in your favor and then adding positions back as it continues.

Here's something Ed Seykota said about pyramiding:

http://www.seykota.com/tribe/pages/2003_Feb/index.htm#pyramiding

Just some food for thought.

i add smaller lots as i go ahead, except for the second, 40%.

i want to make a good profit so i'm not happy with scaling bit by bit, but each to their own, i do scale out 2/3 eventually though.

 

[stevegee58]

I much prefer reliability and repeatability in what I do.

Then again, I'm kind of a boring person.

 

[TGpop]

so you scale out along the way?

 

[TGpop]

LONG EURJPY
TRADING RANGE
my buy limit was pentetrared but not filled! so screw it i just buy anyway.

LONG 1@109.4
BS 4 @ 109.975
BS 3 @ 110.157
BS 2 @110.32

TARGET:110.735

SL:INITIALLY@109.401....once all orders filled moved to entry;109.4
once 2/3 target reached 1/2 will be covered, stop to BE.

yes, back to 1/2 again, i read that larry hite link , about what feels comfortable and what actually makes money....covering 2/3 would feel great, but as dennis said ' if it feels good, don't do it'

 

[TGpop]

stopped out of EJ for a small loss.

notice- 2 losses in a row, but only 0.2% of capital

Mistakes happen, i'm wrong on entry, i cannot predict, prices are volatile and the market can do things...strange and unexplainable so the best i can do is try and grab a piece without trying to be right.

 

[stevegee58]

I ran across this fellow on another board who wrote a very nice MT4 EA to manage trades in what he calls "anti-grid" style. It's not an automatic trading system, just a trade management EA.

http://sites.google.com/site/prof7bit/snowball

The source code is open so you can modify it to do the sizing progression you want. The released code only does equal sized positions.

 

[TGpop]

damit! yeh well my EJ trade went past my stop loss ffs, i need an EA to manage trades lol.

LONG USDCHF
cba to post all levels, ill just post picture

reason for entry: major support and trendline off dailies