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Pyramiding or stacking your trades

  • #1
  • First Post: Edited Jul 26, 2023 1:14am Jul 25, 2023 11:26pm | Edited Jul 26, 2023 1:14am
Hi guys,

Do you know how to stack your trafes or pyramid it?

I ask because i find this a nice thing to do at htf like dailies, but a bit harder to do on ltf. But it is good.

Let me know if you guys want me to make a guide for stacking or pyramiding
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Trading is gambling. So gamble responsibly.
  • #2
  • Jul 27, 2023 1:42am Jul 27, 2023 1:42am
What would you consider an acceptable loss for this staked position? In other words, what's your definition of being wrong on these staked trades? If your goal is to close the very first trade with a profit, adding a second trade won't necessarily help "improve" the prediction on your initial trade. From a money management perspective, the second trade simply averages the entry price. For instance, if the entry price of the first Buy trade is $15 and the entry price of the second Buy trade is $10, then the averaged Buy entry price would be $12.50. However, you could achieve the same outcome by waiting for the price to decrease from $15 to $12.50 and then making a single trade with a 2x position size. Just compare:

You bought 1 unit of asset at 15 USD, then 1 unit at 10 USD. Suppose current price - 11 USD. Floating P/L: - 3 USD

Or:

You bought 2 units at 12.5 USD. If current price is 11 USD, floating P/L: - 3 USD
  • #3
  • Jul 27, 2023 2:51am Jul 27, 2023 2:51am
Quoting pizd0s
What would you consider an acceptable loss for this staked position? In other words, what's your definition of being wrong on these staked trades? If your goal is to close the very first trade with a profit, adding a second trade won't necessarily help "improve" the prediction on your initial trade. From a money management perspective, the second trade simply averages the entry price. For instance, if the entry price of the first Buy trade is $15 and the entry price of the second Buy trade is $10, then the averaged Buy entry price would be $12.50....
1r is acceptable loss for me as thats how i design per trade.

I then go for 1r gain before moving the stop loss to be +1 and the new trade gets trigered as i use daily bars. So one trade a week.

https://www.tradingview.com/x/vCFa2RCr

Here for every .3 i make an order and then secure both via be +1.

I was able to trigger up to the 3rd rr but got be +1 on all 3 trades and ended up closing it.

A friend reminded me that i should simply let it be because then i would have instead of just 8% gain, i could have made 12% in that one trade.

So its essentially not that easy or hard, you just need to make a gamble for a one trade thats 3r, a second entry thats 2 r, and the last one for a 1r.

But thats entirely up to your risk to stomach.

Of course here i haven't established the rules yet since i haven't written the guide yet. But we essentially have 3 choices.

1. The enter at market structure break (subjective stacking)
2. Fib standard diviations
A. Normal fib
B. 1/2
C. 1/3
3. .1 diviations which is a bit more risky for me, plotting the highest and lowest in the daily chart.
Trading is gambling. So gamble responsibly.
  • #5
  • Edited 10:25pm Jul 29, 2023 10:03pm | Edited 10:25pm
Quoting bayfresh
Hidden
Wow, poor shaming.

https://www.tradingview.com/x/OGMriCBd

and basis is simple fvg daily

https://www.tradingview.com/x/jaCiS52Q

:3 trading is gambling.
Trading is gambling. So gamble responsibly.
  • #6
  • Jul 29, 2023 11:41pm Jul 29, 2023 11:41pm
Quoting Sovy
{quote} Wow, poor shaming. https://www.tradingview.com/x/OGMriCBd and basis is simple fvg daily https://www.tradingview.com/x/jaCiS52Q :3 trading is gambling.
That's for your own benefit. You'll thank me later if you still have sanity before you destroy all of your bankrolls.

What do you know about gambling? Playing a game that you never win? Why are you playing such a game?

Change your game when you still have time.
  • #7
  • Jul 31, 2023 4:41am Jul 31, 2023 4:41am
Quoting Sovy
{quote} 1r is acceptable loss for me as thats how i design per trade. I then go for 1r gain before moving the stop loss to be +1 and the new trade gets trigered as i use daily bars. So one trade a week. https://www.tradingview.com/x/vCFa2RCr Here for every .3 i make an order and then secure both via be +1. I was able to trigger up to the 3rd rr but got be +1 on all 3 trades and ended up closing it. A friend reminded me that i should simply let it be because then i would have instead of just 8% gain, i could have made 12% in that one trade....

It's still a price averaging but let's see how it goes, some market patterns do need to be handled with pyramid trades like pullbacks in a trend.
  • #8
  • Jul 31, 2023 5:10am Jul 31, 2023 5:10am
Quoting pizd0s
{quote} It's still a price averaging but let's see how it goes, some market patterns do need to be handled with pyramid trades like pullbacks in a trend.
I only like it in daily bars, to be fair, since it's less punishing. Price action is too tight, for me, in lower time frames to have a good pyramiding.
Trading is gambling. So gamble responsibly.
  • #9
  • Jul 31, 2023 1:26pm Jul 31, 2023 1:26pm
Hi all!

This seems very risky proposition to me as it can turn on you very fast.
  • #10
  • Sep 2, 2023 6:45pm Sep 2, 2023 6:45pm
Quoting Sovy
Hi guys, Do you know how to stack your trafes or pyramid it? I ask because i find this a nice thing to do at htf like dailies, but a bit harder to do on ltf. But it is good. Let me know if you guys want me to make a guide for stacking or pyramiding {image}
Could you please clarify your definition of "pyramiding" and "stacking" ??

after .. are they opposite terms?
each day 10%,,,, https://www.forexfactory.com/thread/1371538
  • #11
  • Sep 2, 2023 7:13pm Sep 2, 2023 7:13pm
Quoting Macd-rsi
{quote} Could you please clarify your definition of "pyramiding" and "stacking" ?? after .. are they opposite terms?
Pyramiding, i mean to say is when price goes up, you make orders in that direction with the assumption of it going to the original tp. So it's multiple trades on the same pair. This is the only important meaning i have.

I don't mean the opposite where if yiu make a trade and it goes lower, yiu make a new trade to cost average the old one. This is also a good strategy but requires deep pocket and works more in investing in indexes or stocks not in currencies.

Quoting Econometrics
Hi all! This seems very risky proposition to me as it can turn on you very fast.
That is true. So it's up to the trader to use it. It's beSt in the case of those who know how to hold a long trade and that trade has followed a trend in one directions. Or an ict trader who works backward knowing where the trade will end and so can make.multiple positions over the course of price action.
Trading is gambling. So gamble responsibly.
  • #12
  • Sep 2, 2023 8:57pm Sep 2, 2023 8:57pm
Quoting Sovy
{quote} Pyramiding, i mean to say is when price goes up, you make orders in that direction with the assumption of it going to the original tp. So it's multiple trades on the same pair. This is the only important meaning i have. I don't mean the opposite where if yiu make a trade and it goes lower, yiu make a new trade to cost average the old one. This is also a good strategy but requires deep pocket and works more in investing in indexes or stocks not in currencies. .
THANK you dear
what do you mean by stacking??
each day 10%,,,, https://www.forexfactory.com/thread/1371538
  • #13
  • Last Post: Sep 2, 2023 9:09pm Sep 2, 2023 9:09pm
Quoting Macd-rsi
{quote} THANK you dear what do you mean by stacking??
I just used the same words as vice versa. Meaning pyramiding or stacking.

I have to impress first that this method works best if your tp is atleast 3rr. So you can add orders.

There is a reverse method but i don't use it as much since i use a stop limit order. Now. Less trades but is less risky too.
Trading is gambling. So gamble responsibly.
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