Disliked{quote} George also mentioned that, after a trade entry, if price moves against his position, he will add to his positions. So, he uses pyramiding down. That way of trading typically has high hit rate. A 90% hit rate is common for that way of trading. Just that, with pyramiding down, you can have a hit rate of 90% but still lose money long term. In George's case, I tend to believe he is profitable. If he uses a single entry technique, his hit rate might be 70%~80% at R:R of 1:1, still very high. But all that is just my conjecture. I haven't seen...Ignored
The problem with this pyramidal technique is if there are very large price movements between the entries . In this case the position can becoming really heavy. The potential losses on the newest additions could erase all profits .
Furthermore , it's necessary to avoid currencies with a tendency to form gaps .Gaps can cause stops to be blown very easily , exposing the trader to more risk . A large gap could mean a very large loss.
Another risk is of a psychological nature : the pyramid trading unleashes the greed.
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