Trading Pyramid Thweis The basic concept of pyramiding into a position is that you add to the position as the market moves in your favor. your stop loss moves up or down (depending on trade direction of course) to lock in profit as you add lots contracts. this is how you keep your overall risk at 1r whilst increasing your position size on the trade. Here is a diagram of what your trade looks like at the beginning: the trade pushes on in your favor and you decide to scale in with another 20k units at 1.2450. your overall position size is now 40k or $4 per pip on the eurusd, this increases your potential reward to $1,000 if price hits your target at 1.2250.
Pyramid Trading Strategy Double Your Profit Potential Example of a pyramid trading strategy. for clarity purposes, let’s apply this concept to the micro e mini nasdaq index. let’s assume we have $2000 in our trading account. the maximum risk we can take is 2.5% per trade, in dollar terms that’s a $50 stop loss per position. This trading strategy is based solely on the power of using leverage and was made popular by one of the greatest traders of all time, jesse livermore. example of pyramid strategy. a pyramiding strategy is considered a risky investment approach, but with proper money management can produce stellar results. The buy and hold strategy results in a gain of 5 x 470 pips or a total of 2,350 pips. the pyramiding strategy results in a gain of (3 x 470) (2 x 330) (2 x 210) (2 x 100) = 2,690 pips. this. Pyramiding: a method of increasing a position size by using unrealized profits from successful trades to increase margin. pyramiding involves the use of leverage to increase one's holdings by.