This is what real trading is

[N Rothschild]

i can assure you pyramiding will end in disaster 99.9% of the time.

 

[elitejets]

I don't think John Paulson's mortgage short trade was the greatest ever. He was also a fraud who screwed people over, aided by his friends at the vampire squid shop:
http://www.deepcapture.com/john-paulson-and-the-greatest-pump-and-short-fraud-ever/

Not my way of trading anyhow.

 

[FXTrend240]

i can assure you pyramiding will end in disaster 99.9% of the time.

i don't understand why it would be, surely if you are wrong and you have only scaled in , then you lose less % than if you go all in from the start?

whatever, the market wizards scale in, although bill lipschutz lost all of his account when he pyramided options.

 

[N Rothschild]

i think one of the best trades ever was stan druckenmillar breaking the bank of england

 

[FXTrend240]

tudor jones in 1987 was good too, though others banked big on that too

 

[oildaytrader]

i don't understand why it would be, surely if you are wrong and you have only scaled in , then you lose less % than if you go all in from the start?

whatever, the market wizards scale in, although bill lipschutz lost all of his account when he pyramided options.

trends get to exhaustion levels and start consolidating , every new trade becomes a loser.Tried backtesting pyramiding , no success to report.

 

[N Rothschild]

scaling in is not "pyramiding your whole account"

 

[FXTrend240]

scaling in is not "pyramiding your whole account"

sorry, that's what i meant

 

[chloe_wong]

oh, I'm really glad to see your thread and learn your experiences.

 

[meanreversion]

It's utter drivel. Can't believe I'm reading it, but I got an email to tell me there had been a reply, and I clicked on the link, then I started reading ...

Pyramiding is the basis of longer term trend systems, without it the returns would diminish. It probably doesn't work on short time frames, I haven't tested it.

 

[oildaytrader]

It's utter drivel. Can't believe I'm reading it, but I got an email to tell me there had been a reply, and I clicked on the link, then I started reading ...

Pyramiding is the basis of longer term trend systems, without it the returns would diminish. It probably doesn't work on short time frames, I haven't tested it.

Good point.It does not work on short time frames.

It may work well on stocks which can have a gain of several hundred % over a couple of years.

 

[oildaytrader]

i can assure you pyramiding will end in disaster 99.9% of the time.

Thank you for your assurance , how come it will not work on the daily google chart below?tard.

 

[meanreversion]

I've recently tested trend models with pyramiding following initial entry, between 1-5 pyramid scale ins at 0.5 ATR steps each time from start price. The 5 pyramid typically makes the most money, but at the expense of larger drawdowns and a higher standard error (deviation).

One pyramid doesn't tend to be enough, but 2 seems to work well (good CAGR/MDD). It just depends on your tolerance for drawdown and the desire or otherwise for smooth equity curve.

Backtesting? That surely is NOT real trading, I'm waiting for the acerbic reply from the thread starter.

 

[meanreversion]

i can assure you pyramiding will end in disaster 99.9% of the time.

Sorry, but this statement is patently untrue. Or maybe it's just intended as a total joke. Whichever, it has no grounding in reality.

 

[N Rothschild]

"pyramid your whole account" this is what im saying wont work 99% of the time.

 

[meanreversion]

Betting all your money on one trade will fail 99 pct of the time? Is that the point? Statisctically this is almost impossible.

Your comment is clearly designed to imply that pyramiding is a "bad" thing, and I don't believe that is either helpful or true. Position sizing is as important as choosing entries and exits, so to dismiss it in this fashion is plain wrong.

 

[N Rothschild]

Thank you for your assurance , how come it will not work on the daily google chart below?tard.

isn't trading from hindsight a wonderful thing?

 

[N Rothschild]

Betting all your money on one trade will fail 99 pct of the time? Is that the point? Statisctically this is almost impossible.

Your comment is clearly designed to imply that pyramiding is a "bad" thing, and I don't believe that is either helpful or true. Position sizing is as important as choosing entries and exits, so to dismiss it in this fashion is plain wrong.

so your advocating pyramiding untill you have no margin left as a good thing? ok..

 

[meanreversion]

I think the best advice would be to ignore everything you say.

 

[meanreversion]

By the way, "you are" contracts to "you're", not "your". Another reason not to read your (meaning something that belongs to you) posts.