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Thread: position-sizing/pyramiding egies to decrease risk?

  1. #1
    Suppose you are given a 70% accurate egy (r:r = 1:1)

    How can you decrease your risk further?

    Can you select pyramiding?
    Can you select clustering?
    Can you select some-sort of averaging?
    Can you split up your first entry-amount re-enter at better prices(pullbacks)?
    Which risk-management technique will probably be most acceptable for this circumstance? (taking probability fixed r:r into account)

    What are some of the most usual position-sizing egies to decrease risk?

    The objective of this discussion :

    Its hard to increase probability of the majority of mechanical systems , after a certain point. Should you join a 70% accurate egy with a different 70% accurate analytical-stuff, the systems probability gets decreased. So most egies can't be enhanced via more technical-analysis.

    Subsequently, money-management is the only method left to lower the risk which signifies improvement to the machine (if there's any room for this).
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  2. #2
    I'd like to know your definition of risk! The term is used and can lead to a lot of confusion.

  3. #3
    Quote Originally Posted by ;
    quote My Favourite The Ladder System.
    Sounds just like exactly what I'm doing. Only works that are trend-following are said by people in trending markets. Like that's an issue. When the market's not trending, there is't a primary trade!

    Wish I'd seen your system earlier. Nicely done indeed.

  4. #4
    pyramiding
    pyramiding is what can make you 1000 pips on a 300 pip move


  5. #5
    Quote Originally Posted by ;
    Suppose you're given a 70% accurate egy (r:r = 1:1)
    IMHO ... If you've got a consistant 70% WR with 1:1 RR ... there is absolutely no reason to change anything in how you're trading.

  6. #6
    My positions that are trend-following are pyramided by me. As soon as the transaction is opened, I've got a duplie order set that will trigger when the unrealised gain equals the trade's capital risk. I continue doing so until we receive a pull-back or the tendency weakens. This keeps the capital risk at no longer than the amount but permits for a parabolic growth in profits as more pyramids are added.

  7. #7

  8. #8
    trend-following positions. The moment the trade is opened I have a duplie order set that will activate
    Is that a pending order. Thank you

  9. #9

  10. #10
    Quote Originally Posted by ;
    Which would you prefer ? image image image image image
    Not one of them. I really don't use TP's on trades, I plan to have as many positions open as you can if the trend is continuing. I re-set the SL on all previous trades when the latest one is opened, the SL on all (brief) trades would be the exact same distance above entrance as the first SL was over the first trade's entrance.

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