Loading in on a winning position for short-term positions.

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outthislife

Well-Known Member
I don't get it. Do you just add another position of the same size when it moves past your SL * 2 as long as it looks like it'll keep going your way?

This averages your entry down, so you'd have to re-calibrate your stop to -SL to that new entry level, right?

It looks like this is a huge factor in being wildly profitable (piper, jcab, et al) vs 'good'. Can anyone shed some light on this significant part of trade/position management?
 
http://www.investopedia.com/articles/trading/09/pyramid-trading.asp

Just this?

Or this? http://www.actionforex.com/articles-library/money-management-articles/pyramiding:-a-risky-strategy-200603035356/

Or this? http://www.learntotradethemarket.com/forex-trading-strategies/pyramiding-scaling-in-money-management-forex-trading
 
outthislife said:
Or this? http://www.learntotradethemarket.com/forex-trading-strategies/pyramiding-scaling-in-money-management-forex-trading
Click to expand...

This is similar to what is taught at Proact traders http://proacttraders.com They have a lot free info on their website including their daily ny session webinar archives. They have a free 10 day demo also. You can see how and when they decide to add to positions. I subscribed to them for a few months and learned a lot.
 
Out, haven't checked the links, the usual way to add is simple.

You mention short term, therefore your approach has to be session based (not charts).

Past week you have been biased long Fibre, you wait until Tue to enter, break of AS high, then you want to add.

Wed, LO enter the break of AS high, Thur, LO enter again the break of the AS high, Fri just exit your position - classic market behaviour, the only question was why were you biased long, market thinking maybe.

Btw, no adding to a losing, either the bias (understanding) is right or wrong, if right then add, if wrong then exit.
 
outthislife said:
I don't get it. Do you just add another position of the same size when it moves past your SL * 2 as long as it looks like it'll keep going your way?
Click to expand...

"looks like" has nothing to do with it. when you're on the wrong side, you'll know all about it...

outthislife said:
http://www.investopedia.com/articles/trading/09/pyramid-trading.asp

Just this?

Or this? http://www.actionforex.com/articles-library/money-management-articles/pyramiding:-a-risky-strategy-200603035356/

Or this? http://www.learntotradethemarket.com/forex-trading-strategies/pyramiding-scaling-in-money-management-forex-trading
Click to expand...

yikes...

"Nial Fuller is a Professional Trader & Author who is considered ‘The Authority’ on Price Action Trading."

yet in his first example he is short 75 ticks away from real entry, with a 100 tick SL :eek: ...

Nial Fuller is a lightweight, if he was a real authority on PA, he wouldnt need to sell his "services"...

Peterma said:
Out, haven't checked the links, the usual way to add is simple.

You mention short term, therefore your approach has to be session based (not charts).

Past week you have been biased long Fibre, you wait until Tue to enter, break of AS high, then you want to add.

Wed, LO enter the break of AS high, Thur, LO enter again the break of the AS high, Fri just exit your position - classic market behaviour, the only question was why were you biased long, market thinking maybe.

Btw, no adding to a losing, either the bias (understanding) is right or wrong, if right then add, if wrong then exit.
Click to expand...

I doubt OTL is talking about one trade per day... That's not going to cut it, try 5+ trades per day per pair...

And now for the useless info.... move along, nothing to see here....
S&R rules the game, where are the short term intraday stops? where are the lows? where are the highs?
Look at Fridays EURUSD action. 3 longs during LO at nice support levels (~180 ticks long, 7 tick SL on each position), all wipe out obvious highs on each occasion. Then, once we've toasted all the highs, trapped the breakout artists long, and fully diverged (the almighty dollar/sterling/eurotrash), we flip and short. at least 4 short positions (~190 ticks total) during the NY session, you tell me where... toasting those 85 lows...
At least 7 trades on EURUSD Friday, (more if you fancy your chances long during LO) ... One Shot One Kill? Ha
Needless to say, the Cable was a gift on Friday. 6 shorts AFTER the fact.... puke 'em out
The stop is a function of your account equity max. % risk.
If you're trading with a ridiculous stop, you're never gonna scale into intraday moves properly...
8)
 
sell the rallies and buy the dips folks.

you'll notice that each (let's say) 100 pip sell-off still has rallies embedded within it, that's where you would add additional shorts. simple stuff, but tricky to implement consistently. the basic concept remains the same, as described in first line of this post. what more can I say without overcomplicating things?? :-\
 
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