Pyramid position based on runup

[flyingforget]

I have an idea ,if the runup is greater than specific value,then add one more position,do you think it workable?

 

[TSGannGalt]

Depends...

GENERALLY SPEAKING, there is less chance of the runup to continue than to revert back to the norm... again, "Generally speaking"...

 

[ksonsinc]

well it is very ddangerous averaging down cause what if it never come back to your position

 

[fredit]

yes, pyramid like so works well with expected stock runs of 25%+

- %50 at b/o
- %35 at 1.02x of b/o
- %15 at 1.05x of b/o

b/o = break out point

This technique (ruffly), is used by many of my friends that have done 200%-1000%+ ROI a year..

check out William Oniels book... he talks about this... and his company handles some of the largest funds in the world...