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Hello Tom, I have been doing this for a while as follows. I add to my
position on a set percentage increase, say 10%, and then also use two
trailing stops to exit. The first takes my stakes out, the second the
balance. I use Adam Hefners coding of Robert Krauz's multiple time frame
(MUTF) weekly balance point step, for my first stop, then a looser
volatility based stop for the rest, all of which was posted here.
The step size of 10% needs to be proportional to your total in and out
dealing costs including spreads, slippage, and all, ( mine are massive, so I
use a big step size.)
The subject of money management was aired a while back here, but went off on
a tangent of "optimal f " which was way over my head. It is the key to
sucessful trading, and usually the least considered part of any trading
plan.
Generalities abound, but specific schemes are rare. Do tell me what you
discover.
Simon Roberts
----- Original Message -----
From: Tom Strickland <tstrickland@xxxxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Monday, December 13, 1999 4:53 PM
Subject: Pyramiding
> Does anyone have knowledge of, experience with and/or references to
> pyramiding? By pyramiding I mean the systematic increase in your position
> size as the price of your investment moves up (or down if you are short).
> I've seen many casual comments about pyramiding but no systematic,
thorough
> studies.
>
> Tom Strickland
>
>
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