Execution - Adding to a position

Dear all,

Great to be part of this fine community, and I wish you all the best with your respective trading endeavours.

I trade the S&P E-mini intra day, and have recently moved from trading 1 lot to multiple (the latter depending upon certain risk parameters depending upon the trade), and am facing difficulties with adding to a winning position.

I tend to find that I either add too soon, and get stopped on on a routine market retrace, or am too defensive and find the market does not get to my entry, in both cases more often than not reaching my target.

The net result is that in both scenarios this is severely impacting my performance, since my system relies on pressing home advantage on correct trading ideas.

Any help would be much appreciated!

Thanks,
Sam

Why add to a position later? Why not add two positions from the start if you can afford that level of risk per trade? If you have a winning system using that initial entry indicator, why not just increase that position?

From the sounds of it, you are saying you dont have a reliable entry means to add to a position after the initial trade. I would say you should test that secondary entry indicator as much as the first to see if it produces as reliable or better results.

Best of luck...

SpeacialK77 said:

Why add to a position later? Why not add two positions from the start if you can afford that level of risk per trade? If you have a winning system using that initial entry indicator, why not just increase that position?

From the sounds of it, you are saying you dont have a reliable entry means to add to a position after the initial trade. I would say you should test that secondary entry indicator as much as the first to see if it produces as reliable or better results.

Best of luck...

Click to expand...

I would imagine he removes risk on the first position by moving his stop to BE, before adding a second, then removes risk on the second before adding a third, etc., etc.

Well i also have trouble adding to my winners, I can afford more contracts but i like to scale in on a increasing scale on Longs and vice-versa for Shorts as that way the risk is very limited , my problem is i do it based on gut feeling and not some sound theory or perhaps sometime i enlist help of orderflow [But that usually ends up being a scalp ], i want to offcourse change it and make it based on some logic but i don't know where to start. Generally speaking i have a rule to pyramid into 3x initial position IF market is sync with the main trend, but apart from that i want to add more positions to take it to maximum of 10x Initial position for those that are working for me.
How do i go on about it i.e. making the position that is turning out a winner into a fully loaded rocket

sammythescalper said:

Dear all,

Great to be part of this fine community, and I wish you all the best with your respective trading endeavours.

I trade the S&P E-mini intra day, and have recently moved from trading 1 lot to multiple (the latter depending upon certain risk parameters depending upon the trade), and am facing difficulties with adding to a winning position.

I tend to find that I either add too soon, and get stopped on on a routine market retrace, or am too defensive and find the market does not get to my entry, in both cases more often than not reaching my target.

The net result is that in both scenarios this is severely impacting my performance, since my system relies on pressing home advantage on correct trading ideas.

Any help would be much appreciated!

Thanks,
Sam

Click to expand...

If you have trouble adding to winning position then your system is mean-reverting. Think about that...

avano said:

If you have trouble adding to winning position then your system is mean-reverting. Think about that...

Click to expand...