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Posted

Re: pyramiding

 

In some way, pyramiding seems similar, not to a martingale, but an anti-martingale. There are however differences. And, if risks are managed properly, pyramiding is not dangerous at all. But you need to know and to learn how to do it properly.

Posted

Re: pyramiding

 

Does a pyramid like a martingale? Il didn't understand.

 

blueocean83,

 

A martingale consists in adding new positions to losing positions. There is an infinite variety of martingales depending on how you calculate the trade sizes (an example is doubling the size after each losing trade). Many present EAs are based n such martingales.

 

An anti-martingale is similar, but it consists in adding new positions to winning positions. Thus pyramiding when you are in the right direction of a trend is an anti-martingale.

 

Hope this is clear.

Posted

Re: pyramiding

 

I wouldn't recommend this kind of pyramiding techniques, they always end in the same way after a huge trend, but that's something that probably every trader has to experience on its own.

Posted

Re: pyramiding

 

I agree that pyramiding is not simple. To share with you my experience. I have a 1k live acct attached with Pointbreak. It hit margin last year Aug 08.

Posted

Re: pyramiding

 

Hi,

 

I think take your profit and be happy. To not try to make huge cash :D

Playing with fire is dangerous ;)

 

He's mostly right in my opinion. Unless you have a proven technique and the proper lot sizes, it can be rather dangerous. Not even discussing martingale which is a sure-fire way to lose your account.

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