We have tested a wide verity of entry logics. I did not say that pyramiding does not work. It simply has less efficiency then reentry techniques.
I use pyramiding extensively. Over a period of time I have experimented with many things and now settled on few simple rules. 1 There is a pre determined 3 pyramid entries if the first entry becomes profitable within the first 25% of the move 2 After position has 100 % or more profit from initial entry, I again pyramid three times if it has a 60 day breakout on high volume. After adopting pyramiding three years ago,overall profitability of system has increased substantially. But crux of my system is based on vehicle selection so if my vehicle is right pyramiding allows me to milk the trend much better .
Interesting instead of pattern recognition you let the price tell you. Currencies would be valid instruments, I would think. (believe it or not the exotic currencies are undiscovered for this) Shhhh..dont tell anybody how those suckers can trend... Michael B. I use pyramiding extensively. Over a period of time I have experimented with many things and now settled on few simple rules. 1 There is a pre determined 3 pyramid entries if the first entry becomes profitable within the first 25% of the move 2 After position has 100 % or more profit from initial entry, I again pyramid three times if it has a 60 day breakout on high volume. After adopting pyramiding three years ago,overall profitability of system has increased substantially. But crux of my system is based on vehicle selection so if my vehicle is right pyramiding allows me to milk the trend much better .
I am not familiar with the term pyrmiding, but it certainly describes my style. I am in the market almost constantly, and check it probably 4 - 8 times a day, depending. I keep pretty tight stops, moving them 3 times a day or so; and when a stop for a position has moved beyond its entry point in the profitable direction, I'll usually add to the position. I use 20:1 leverage, and my preset order size is about 2% of my account. The signal that I use has been fairly good at indicating changes in the trend on (on a scale of days. I am refining the indicator so it will be accurate to changes in trend that last less than one trading day.) I trade the eur/usd exclusively, and this style certainly helped me maximize profit. I have been using the current indicator since the beginning of November. In that time, my account now is 14% larger than it was on nobember 5 I would think that pyramiding's success would be dependant on the market (or individual stock) studied. I was surprised that a firm's logician could say categorically that it doesn't work. Particularly in low-cycle commodities like grains (where I got my start), the trend may remain in place for months at a time, when the value doubles or even triples. I'm thinking of corn here.
I eluded to your strategy a little in the opening post. Thanks for sharing. I concur it would be instrument dependant. There are many techniques for pyramiding. There is a trader AMTSWA that I wish would share in detail his strategy. He is a "floating pyramider" among other strategies, which is fascinating to me...He has an "always in strategy" that he called trades live here, which truly kept me on the edge of my seat...(remember that thread) Jack Hershey had a technique like this...But I do not know if he is still around and what handle he is using. Ok, he is controversial, so lets not go there. Lets justs pull the good stuff out of everyones posts.. Michael B.
your 'scientist' should have been able to tell you that in about 1 day, just observing some basic probabilities on your strategy. I hope you don't pay him too much...
Oddtrader, We may be out of luck. Me expects that ElectricSavant is honoring someone's PM and is not saying much more. Maria