Turtle Trading question

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

  1. 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;

    Assume $10,000 to trade
    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?