Pyramiding is the best way to make big money or kill your account | Forex Factory

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Pyramiding is the best way to make big money or kill your account

  • #1
  • First Post: Edited 10:29am Jan 17, 2017 5:46am | Edited 10:29am
If you have a winner trade just keep adding to it as the market keeps moving your way.
Instead of entering my position at once,i prefer to manage my trades, using a series of incremental trades that build into winning positions while minimizing my costs of stop-losses.
I Scale Into Trades and in case that my entry was not perfect,i don't think that adding to losing positions is an error if you add at the right price.
he, alone, was to blame for his losses in the zero-sum game
  • #2
  • Jan 17, 2017 5:54am Jan 17, 2017 5:54am
Quoting comoestas
If you have a winner trade just keep adding to it as the market keeps moving your way. Exit as soon as you see signals of reversing.
this work both ways, you have a losing trade but your stop loss was not hit, you can add to your trade at the right time to recover faster.
he, alone, was to blame for his losses in the zero-sum game
  • #3
  • Jan 17, 2017 7:06am Jan 17, 2017 7:06am
The theory is all well and good. The practice is somehting esle.

It is a bit like saying trading is easy - buy low sell high...

Trade out with signs of reversal.... that is a bit of an all encomposing statement. If we could all do that, none of us would ever lose money.

Also, pyramiding only works if it has set rules to work with (just like anything) Otherwise, you will find that your profits dissapear as uickly as you wrote your 'theory'.
  • #4
  • Jan 17, 2017 7:07am Jan 17, 2017 7:07am
Quoting comoestas
{quote} this work both ways, you have a losing trade but your stop loss was not hit, you can add to your trade at the right time to recover faster.
I think that this comes under 2 quotes 'Good money after bad' and 'a fool an dhis money are easily parted'.


Why if your stop loss is not hit, you dont just trade with the maximum lots? You are increasing risk away from your entry rules as to why you got into the trade in the first place.
  • #5
  • Jan 17, 2017 8:04am Jan 17, 2017 8:04am
Quoting comoestas
{quote} easy to do when you mastered your system. {image}
Why you sell when is up trend?
If you interested my strategy, send to me private message.
  • #6
  • Jan 17, 2017 10:43am Jan 17, 2017 10:43am
It works when you desperately try to recover your losses after a margin call.
  • #7
  • Jan 18, 2017 6:49am Jan 18, 2017 6:49am
To create wealth PIG FARMING could be wonderful process. However choosing right picks at right time is important.
Never Gamble Forex
  • #8
  • Jan 18, 2017 8:45am Jan 18, 2017 8:45am
You remind me of my first year of trading (2014-15), I was using a pattern that was highly consistent then, so there was no need to properly calculate the risk and reward. Once the Asian Session made a W or M formation, I would take a long or short position respectively at London Open and nearly every time London Session kept the trend going (with me pyramiding ) till New York Open and I would take my profits and call it a day. It was so easy, then one day the markets evolved, less and less of the pattern pyramiding wasn't a viable option anymore. Last thing I have figured this far is Pyramiding is one of the quickest ways to lose your equity in the markets especially for day traders.
  • #9
  • Jan 20, 2017 8:04am Jan 20, 2017 8:04am
Most of the time pyramiding is a bad idea.
It's because the market is quiet most of the time, and the trends are too short. Usually by the time you add the second trade, this is the best time to collect your profit.
However there are times when pyramiding is the way to go!
I only do it during unusually strong and persistent(and smooth) trends.

I'm talking about the times when you look at the market and say to yourself, "WTF, this makes no sense" and "WHO the hell keeps buying at this levels?":
This is the time to build the great pyramid!
I can tell you from experience, that these are the moments when you make the big profits.

End I can also tell you from experience, that my biggest losses in the past, have ALWAYS came from two things:
- Trading against such unusually strong trends (aka overbought/oversold markets)
- Averaging down.

The combination of the two is often deadly!
  • #10
  • Jan 20, 2017 8:09am Jan 20, 2017 8:09am
Quoting alphaomega
Most of the time pyramiding is a bad idea. It's because the market is quiet most of the time, and the trends are too short. Usually by the time you add the second trade, this is the best time to collect your profit. However there are times when pyramiding is the way to go! I only do it during unusually strong and persistent(and smooth) trends. I'm talking about the times when you look at the market and say to yourself, "WTF, this makes no sense" and "WHO the hell keeps buying at this levels?": This is the time to build the great pyramid! I can tell...
The only way that the turtles made millions starting with just 4,000. was by pyraminding.just get a good system and make your own rules,what works for you.
he, alone, was to blame for his losses in the zero-sum game
  • #11
  • Jan 20, 2017 8:15am Jan 20, 2017 8:15am
Pyramiding can make big money if you know market strong trend and right momentum to jump into market.
Risk comes from not knowing what you're doing.
  • #12
  • Edited 8:48am Jan 20, 2017 8:25am | Edited 8:48am
Quoting dragonexpert
Pyramiding can make big money if you know market strong trend and right momentum to jump into market.
I agree.
the main point is to do thing your way, make your own rules.


read about this master.
""The rules also taught Turtles specific rules about position size, the use of stops, and to PYRAMID aggressively - up to a third of total exposure
Does it Work?
When Dennis experiment ended five years later, his Turtles reportedly had earned an aggregate profit of $175 million (80% CAGR). Some of those turtles went on to enjoy careers as successful commodity trading managers""
he, alone, was to blame for his losses in the zero-sum game
  • #13
  • Jan 20, 2017 8:47am Jan 20, 2017 8:47am
Quoting dragonexpert
Pyramiding can make big money if you know market strong trend and right momentum to jump into market.
Judging market trends and assessing right momentum is possible only if you have given lots and lots of chart time and have developed an intuition as a result of watching charts and posting demo trades initially before going live.
Practice makes a person perfect
  • #14
  • Jan 20, 2017 9:45am Jan 20, 2017 9:45am
Quoting simnz
{quote} Judging market trends and assessing right momentum is possible only if you have given lots and lots of chart time and have developed an intuition as a result of watching charts and posting demo trades initially before going live.
trading is not about intuition ,it is about trading rules.
and you do not need to spend years of chart time,the big tradedes did that for you allready, just follow the best. Pick up a system from the big traders.
he, alone, was to blame for his losses in the zero-sum game
  • #15
  • Edited 12:43pm Jan 20, 2017 10:02am | Edited 12:43pm
This is one of Dennis system:
Buy (sell) when the price exceeds the high (low) of the preceding 55 days. All breakouts for System 2 would be taken whether the previous breakout had been a winner or not. The System exit was a 20 day low for long positions and a 20 day high for short positions.
so based in that channel you can use your brain and add your own rules.
like addin the 55 ema high and the 55ema low,instead of just waiting for 55 bars BO, and use your own ST and TP
But this system will kill your account in sideway market, so find some filters and it to your chart

SCALP THE 1M or position trade any time frame
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he, alone, was to blame for his losses in the zero-sum game
  • #16
  • Jan 20, 2017 11:34am Jan 20, 2017 11:34am
I was thinking about the same thing too.

The turtles were to pyramid every 1/2 ATR(20).
The name of the game is finding weaknesses in supply or demand.
  • #17
  • Mar 19, 2017 11:45am Mar 19, 2017 11:45am
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he, alone, was to blame for his losses in the zero-sum game
  • #18
  • Mar 19, 2017 11:47am Mar 19, 2017 11:47am
Eurusd
i got a buy signal
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he, alone, was to blame for his losses in the zero-sum game
  • #19
  • Mar 19, 2017 7:19pm Mar 19, 2017 7:19pm
EURUSD scalpin the 1 m
nice move

I took profits .
good for a sunday.
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he, alone, was to blame for his losses in the zero-sum game
  • #20
  • Mar 20, 2017 4:06am Mar 20, 2017 4:06am
i'm ready for monday
i found a trade in the QQQ 1 hour .
my stop loss is a close above the record high
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he, alone, was to blame for his losses in the zero-sum game
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