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Discussion in 'Trading' started by andrasnm, Nov 6, 2002.

1. ### andrasnm

If you know the Turtle System you will likely have the answer.
I bought the stuff from the www.turtletrader.com a while back....

How to pyramid correctly?

If I understand some of the calculations leading upto this point;

ATR = \$4
Assume 2% risk

Therefore risk = \$200.
# of contracts = \$200/\$8 (2 ATR) = 25 contracts.
25 contracts = 1 Unit

Understanding the table;
Unit # 1 is my initial position.
Unit Accumulation of 2 ATR = what I used to establish the Unit #.
Price = \$100.
Final Stop = \$100.
New profit needed to pyramid would then be 1/2 ATR or \$2.

Are you suggested then that in the second line of the table that as price increases to \$102 (\$100 + 1/2 ATR) I would accumulate an additional 14 contracts (\$200 risk/3.5 ATR = 14 contracts)?
Am I always basing my risk on the \$200 (in this case) when I calculate the number of additional contracts to accumulate?

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