Indeed I am mainly focusing on finding ideas for pyramiding positions... Any good book, website on that topic?
guess you haven't seen him in last 2 years it's gone as well as the extra 40 lbs he was lugging around. Robert
Assuming you are position or swing trading... The best kind of pyramid is the reverse one. Say your full position size is 6 ES contracts. Initial position is 3, first add is another 2, last add is 1. Or if you just have one add, the first position is 4 the second is 2. You want your adds to be smaller than the initial, so if there is a large move against you, most of your position can be salvaged. Conversely you don't want to start with your full position, because if your wrong, you take less of a loss than with your full position. If you are a scalper, it is a different scenario... You start off with your full position, and begin to scale out right away if the move does not go in your direction right away. Capital preservation is the key. Note: I am not at the place in my trading where I am doing this at the present time. I have not personally tested these concepts. You wanted ideas, these are in my plan. Best book: Tharps. Vince's, for me was a tough read.