Pyramid position based on runup

Discussion in 'Strategy Development' started by flyingforget, Aug 12, 2008.

  1. I have an idea ,if the runup is greater than specific value,then add one more position,do you think it workable?
     
  2. Depends...

    GENERALLY SPEAKING, there is less chance of the runup to continue than to revert back to the norm... again, "Generally speaking"...
     
  3. well it is very ddangerous averaging down cause what if it never come back to your position
     
  4. fredit

    fredit

    yes, pyramid like so works well with expected stock runs of 25%+

    - %50 at b/o
    - %35 at 1.02x of b/o
    - %15 at 1.05x of b/o

    b/o = break out point

    This technique (ruffly), is used by many of my friends that have done 200%-1000%+ ROI a year..

    check out William Oniels book... he talks about this... and his company handles some of the largest funds in the world...