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position-sizing/pyramiding strategies to decrease risk?

  • #41
  • Mar 9, 2018 12:09am Mar 9, 2018 12:09am
Quoting Artcool
{quote} You mean it didn't fail during your extensive backtesting for the past years? Because if this is true, you can just trade it lonely with the maximum leverage... Anyway, you can assume your martingale is a single trade with a stop loss being your entire account. In this case, you cannot assume you made any profit unless your account had doubled and you had withdrawn at least your initial capital, plus some profits. The profits will start coming up because most of the times, the market is erratic and very often reverse to some previous level,...
Thanks for the response. As mentioned in my previous post, martingale with a syste m that has a high expectancy will allow you to scale your exposed level to the market. Say the max loss i am willing to take is 35%.I would Spread that risk over 3 trades in which the last order takes the bulk of the risk. Why? Being as that would be the assumed big winner. So Order 1 = 1%. Order 2 = 5% order 3 = what ever is left.

Clearly each win would result in covering the last lost with overall gain.

Me hitting the tp and scaling all over with the profit allows me to compound my profit. Which is involves less risk as long as you follow same money managememt.


I have also withdrawn my deposit two times over in back to back weeks. My goal is 50 usd a day and withdraw 1500 every week. Thus far it has worked.
  • #42
  • Mar 9, 2018 1:23am Mar 9, 2018 1:23am
Quoting HabibiForex
{quote} Thanks for the response. As mentioned in my previous post, martingale with a syste m that has a high expectancy will allow you to scale your exposed level to the market. Say the max loss i am willing to take is 35%.I would Spread that risk over 3 trades in which the last order takes the bulk of the risk. Why? Being as that would be the assumed big winner. So Order 1 = 1%. Order 2 = 5% order 3 = what ever is left. Clearly each win would result in covering the last lost with overall gain. Me hitting the tp and scaling all over with the profit...
You increase the position when the market goes against you increasing the odds that you are whrong from your entry point ? And if you are right at your entry you just get 1 percetn of your risk to work for you, if you are little whrong then 5 percent ?

Thank You.

Best regards
  • #43
  • Mar 9, 2018 1:26am Mar 9, 2018 1:26am
Quoting jgadefelth
{quote} You increase the position when the market goes against you increasing the odds that you are whrong from your entry point ? And if you are right at your entry you just get 1 percetn of your risk to work for you, if you are little whrong then 5 percent ? Thank You. Best regards
Exactly. So if the sequence doesnt allow for more than 3 straight losses then you could wager on each trade or simply wait for ththre the third order but you should also take into account that the high probability trades appear less frequently. So instead of waiting for that one trade why not take all of them and scale your way up.
  • #44
  • Mar 9, 2018 1:36am Mar 9, 2018 1:36am
Quoting HabibiForex
{quote} Exactly. So if the sequence doesnt allow for more than 3 straight losses then you could wager on each trade or simply wait for ththre the third order but you should also take into account that the high probability trades appear less frequently. So instead of waiting for that one trade why not take all of them and scale your way up.
Do you only scale in when the position moves against you or do you add on pyramiding whern it moves in your direction ?

Thank You.

Best regards
  • #45
  • Last Post: Mar 9, 2018 4:51am Mar 9, 2018 4:51am
Quoting jgadefelth
{quote} Do you only scale in when the position moves against you or do you add on pyramiding whern it moves in your direction ? Thank You. Best regards
The form of "Pyramiding" that is referred to in this thread isnt something i have ever done. Why I have done is in the past is close a position a few pips away from the tp and a
Nd hope for a retrace. Once that happens, i then reenter with the profit i just got. That of course is a massive wawauy to compound but it would mean that i would be gping ahainst my syste m to maximize profits. that to me isn't worth doing.
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