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Like everything else, it's all in the
wrist.
Some like to buy 3 contracts (or multiples of) at
the inital buy point.
The first one is exited as soon as the margin,
taxes, and broker costs are gained.
The second is exited as soon as a profit target is
reached.
The third is held until the trend is
exhausted, or when a specific stop is triggered.
Obviously, if the price direction goes wrong, all
three are exited at once.
If you get the price direction wrong often, its
going to cost ya.
"Pyramiding" is a word that has gained a negative
connotation by those who tried it without adequate testing and crashed their
accounts.
Traditional pyramiding does, for the most part,
fail.
Many people pyramid without calling it that. It's
really just adjusting a previously opened trade.
Done differently, under some conditions, it
works.
-CS
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
Kevin243@xxxxxxx
To: <A title=amibroker@xxxxxxxxxxxxxxx
href="">amibroker@xxxxxxxxxxxxxxx
Sent: Sunday, August 24, 2003 7:36
PM
Subject: Re: [amibroker] Re: adding to
positions in Stocks
<FONT lang=0 face=Arial size=2
FAMILY="SANSSERIF">I've done pyramiding in terms of trading. After
doing it, and getting less than satisfactory returns, why would you want
to? It is essentially dollar cost averaging the wrong way. The
reward/risk characteristic of the position is getting worse as you approach
the final position close-out. Granted, managing a fund may quite
different, since money is always streaming in or out, whatever.
But, it seems to make more sense to find a stock/future that hasn't
moved yet, and invest new money there.Kevin CampbellIn
a message dated 8/24/03 4:29:34 PM Central Daylight Time, psytek@xxxxxxxx
writes:
<BLOCKQUOTE
TYPE="CITE"><FONT lang=0
face=Arial color=#0000ff size=2 FAMILY="SANSSERIF">Pyramiding has been
commented on by Tomasz, and can be implemented by closing and re-opening a
position with a different position size. I also posted another method myself
at the time. Do a search for Pyramid in the AB archive. Here is TJs
example:<FONT lang=0 face=Arial
color=#000000 size=3 FAMILY="SANSSERIF"> // the example system
buys on monday, wednesday (increasing >>>pos)
>>>// and sells on friday
>>>>>>BuyCond = DayOfWeek() == 1;
>>>Buy2Cond = DayOfWeek() == 3; // <FONT lang=0
face=Arial color=#ffffff size=3
FAMILY="SANSSERIF">pyramid<FONT lang=0
face=Arial color=#000000 size=3
FAMILY="SANSSERIF"> >>>>>>Sell = DayOfWeek()==5;
>>>>>>Buy = BuyCond OR Buy2Cond;
>>>PositionSize = IIf( Buy2Cond, 2000, 1000 ); // 1000 is first
>>>trade >>>2000 is <FONT lang=0
face=Arial color=#ffffff size=3
FAMILY="SANSSERIF">pyramided<FONT lang=0
face=Arial color=#000000 size=3
FAMILY="SANSSERIF"> >>>Sell = Sell OR Buy2Cond;
>>>>>>///////////////// >>>Please set
trade delays to zero in the settings page. <FONT lang=0
face=Arial color=#000000 size=2
FAMILY="SANSSERIF">
<BLOCKQUOTE
TYPE="CITE"><FONT lang=0
face=Tahoma color=#000000 size=2 FAMILY="SANSSERIF">-----Original
Message-----From: Chuck Rademacher
[mailto:chuck_rademacher@xxxxxxxxxx]Sent: Sunday, August 24,
2003 4:37 PMTo: amibroker@xxxxxxxxxxxxxxxSubject:
RE: [amibroker] Re: adding to positions in Stocks<FONT
lang=0 face=Arial color=#000000 size=3
FAMILY="SANSSERIF"><FONT lang=0
face=Arial color=#0000ff size=2
FAMILY="SANSSERIF">The inability to add to positions in AB and MetaStock
has been a frustration for a lot of us over the years.<FONT lang=0
face=Arial color=#000000 size=3
FAMILY="SANSSERIF"> <FONT lang=0
face=Arial color=#0000ff size=2
FAMILY="SANSSERIF">After reading some of the posts on this recent thread,
I had an idea that might help. If it was really
important to me to be able to test such an idea, I would try creating
pseudo-instruments. For ease of describing what I'm talking
about, I'll use IBM as an example. By the way, this approach
could be tedious for stocks, but I get the impression that the original
person raising the issue was interested in futures. Cotinuing
with my example of IBM, I could create a new ticker called "IBMx1" that I
could use the first time that I wanted to add to a position. I
could have another (IBMx2) for the next addition, etc.
You could even set commissions/slippage to zero within the AFL for such
tickers.<FONT lang=0 face=Arial
color=#000000 size=3 FAMILY="SANSSERIF"> <FONT lang=0
face=Arial color=#0000ff size=2
FAMILY="SANSSERIF">I haven't thought it all the way through and I don't
really have time to get into it right now. But perhaps someone
else can take it from here?<FONT lang=0
face=Arial color=#000000 size=3
FAMILY="SANSSERIF"> <FONT lang=0
face=Arial color=#0000ff size=2
FAMILY="SANSSERIF">Have fun!<FONT lang=0
face=Arial color=#000000 size=3
FAMILY="SANSSERIF"><FONT lang=0
face=Arial color=#000000 size=2
FAMILY="SANSSERIF">
<BLOCKQUOTE
TYPE="CITE"><FONT lang=0
face="Times New Roman" color=#000000 size=2 FAMILY="SERIF">-----Original
Message-----From: CS
[mailto:res1wgwl@xxxxxxxxxxx]Sent: Sunday, August 24, 2003
4:17 PMTo: amibroker@xxxxxxxxxxxxxxxSubject: Re:
[amibroker] Re: adding to positions in Stocks<FONT lang=0
face=Arial color=#000000 size=3
FAMILY="SANSSERIF"><FONT lang=0
face=Tahoma color=#000000 size=2
FAMILY="SANSSERIF">You can increase or decrease the size of each
position before it is initiated, but not during a trade. For anything.
Not yet.<FONT lang=0 face=Arial
color=#000000 size=3 FAMILY="SANSSERIF"><FONT lang=0
face=Tahoma color=#000000 size=2
FAMILY="SANSSERIF">You could write a dll for the capability but it would
be difficult to keep the separate trades organized. After you decided to
increase/decrease a position while you were in a trade, which
contracts/equities would buy/sell first? When? In what order? According
to what schedule?<FONT lang=0
face=Arial color=#000000 size=3 FAMILY="SANSSERIF">
<FONT lang=0 face=Tahoma
color=#000000 size=2 FAMILY="SANSSERIF">-CS<FONT lang=0
face=Arial color=#000000 size=3
FAMILY="SANSSERIF"><FONT lang=0
face=Arial color=#000000 size=2
FAMILY="SANSSERIF">
<BLOCKQUOTE
TYPE="CITE">----- Original Message ----- From: <A
href="">rlb21079 To: <A
href="">amibroker@xxxxxxxxxxxxxxx
Sent: Sunday, August 24, 2003 4:16 AMSubject:
[amibroker] Re: adding to positions in StocksIs this also
true for equities/stocks?--- In <A
href="">amibroker@xxxxxxxxxxxxxxx,
"CS" <res1wgwl@x...>
wrote:>Can't.>>-CS> ----- Original
Message ----- > From: emarco > To: <A
href="">amibroker@xxxxxxxxxxxxxxx
> Sent: Tuesday, July 15, 2003 9:37 AM>
Subject: [amibroker] adding positions in
futures>>> How can I add postions
(contracts) if a condition is met.>>
example:> I entered a buy position after
signal.>> Add one more contract if profit (first
trade >2%)>>> any idea
how?> thanks>>
juanSend
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