Pyramiding into a trend

Discussion in 'Strategy Development' started by ElectricSavant, Dec 14, 2004.

  1. PRIMITIVE OBSERVATIONS:

    Do you pyramid? (adding to a position as it goes profitable)

    You first need to identify those instruments that trend well. Then you must enter each stage using stops. Could your stops of the first entry dictate the target of the second entry to achieve BE on the entire position, then exit the second entry and let the first ride? This is just a way to think and there are many ways to take profit from the trend. A trader must find THEIR way.

    I was thinking if you could measure the character of an instrument through the ATR indicator, then write down your plan before you make your first entry this might help.

    Could you discuss your techniques of how YOU pyramid, not what sounds good, but how you implement this in your trading. For new traders this might go aganst your thinking, but I urge you to examine this closer. Some of my most profitable moments have occured when I have used this technique...




    ADVANCED QUERIES:

    For you more talented ones, could you share how you think? Do you simply float an "always in" postion and simply look at average price while pulling profit out of the trend? Are you able to use this in the chop environment (Consolidation).

    I find myself becoming like a Chameleon and rather contradictory at times. As I look at consolidation which some say is 70% of the time then convert my "thinking" to trend (30% of the time) I find conflicts in my "thinking". Could some more experienced ones share?

    As long as there is volatility then you could enter anywhere and turn it profitable...isn't this what trading is? This is why being well capitalized is what its all about. yes cut your losses short and re-enter....try try again...many methods and many ways...

    Keeping it simple, sure can get complex :)

    Michael B.

    P.S. Please excuse my bad habits. I edit my posts well into the 1 hour limit. I put a lot of thought into what I post and read what I write and reflect. I suggest you do the same...Yes you too DB
     
  2. My guess is that >70% of few active traders on this site do NOT pyramid. Hence the lack of interest on this thread, although it has been discussed on previous threads

    You raise important questions. I would hope that experienced traders could share some thoughts on the matter
     
  3. We shall see. Folks are being kind and I am getting some interesting PM's instead of flames on this thread.

    After reading one of the PM's I am truly beginning to wonder if I am sharing at the wrong place. What has ET become? an EGO trip sharing adventure ???? or....a place where we can share, learn and discuss trading? (regardless of what the alter ego wifey say's, hehe or should I say altar ego)

    Michael B.
     
  4. I hope you didnt see my remarks as 'flames', if you did my apologies, was not my intention.

    I'll pm you to discuss
     
  5. No sir,

    Not you

     
  6. dbphoenix

    dbphoenix

    Yes, it has been discussed a number of times on other threads, but it always winds up being a flamefest, which may be why you're getting PMs.

    If I were to get into this again, it would probably be on t2w. Shame, isn't it? :(
     
  7. dbphoenix

    dbphoenix

    Saves time to do all that before posting in the first place. And why the swipe? Eager to get this thread off to the usual ending?
     
  8. Thanks for your kind words. But there is hope for ET. We just need to encourage it...

    Michael B.


     
  9. I just want to get your interest and others. My motivations are honorable. Sometimes Db, the best must be persuaded. Please feel free to contribute now that I have your attention.

    Michael B.


     
  10. Hi there, long time since we talked. I had to change my alias due to my personal conflict with baron, oh, well ...

    Anyway, if it helps, I could tell you that we have tested Pyramiding versus non-pyramiding in our office using more than 50 diff. trending algorithms. The results were showing us that non-pyramiding is better. It has almost all the statistics better then pyramiding.

    Cheers.
     
    #10     Dec 14, 2004