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Million Dollar Trader: I traded using the Pyramid Plus Method

2022-09-16 06:36:07


Therefore, the wind-to-report ratio of the overall transaction is 1:6, that is, the potential profit of $1200 is won with a risk of $200; 2. Initial Stop Loss 1.2650; 3. Key Resistance 1.2625; 4. Short $20,000 (first position) at 1.2550 and adjust stop loss for all three positions to 1.2450; 5. At 1.245


Like the Martingale strategy, pyramid trading strategies are also controversial in trading practice.Some people believe that the final result of this type of trading strategy is to end up blowing up or losing a large loss; Some traders believe that as long as a certain increase in the profitable position and follow the trend, the probability of profit is higher than the loss.In the eyes of veteran forex trader Justin Bennett, pyramid trading is a very beneficial way to trade, but it is not without drawbacks, that is, it should not be overused.

Well, the pyramid trading method is well known"

Nial Fuller is known as a sought-after trader, columnist and trading trainer in the field of forex trading with over 16 years of experience trading in the financial markets.Today, his price action trading is considered "authoritative" by many traders.

Nial Fuller

Let's take a look at how to use pyramid trading in a profitable state, this "pyramid" position increase (increase) method does not make you take more risk, and may even allow you to make risk-free trades, while greatly increasing the potential profit.In some cases, position expansion is better than some trades, and we're going to talk about that today.

The oldest proverb you've probably heard on Wall Street is"

How to use the "pyramid" style to increase positions on profitable positions

Note that I mean "safe" because there are basically two ways to add a position to a profitable position:

1)

2)

The so-called "R" value in trading refers to the risk, that is, the initial risk you take when you enter the exchange, which represents the loss that you are willing to take to protect your funds in the event of a trade error.For example, in the stock market, you buy a stock for 50 yuan, and then fall to your stop loss level of 47 yuan, and are stopped out, at this time your risk of R is 3, that is, (50-47 = 3).

下面我将教大家如何安全地进行交易,但在开始之前,我需要强调一件事:

I'm just saying you can add positions when orders are profitable, but that doesn't mean you have to. You know, sometimes the strategies you learn can be very effective, but sometimes they don't work at all. Usually, you can try to increase your position during periods of strong trend or intraday strong trend volatility, but you should not try this method if the market is in an unstable period of range swings or sharp rises and falls.

Well, every time the trade is good for you, you want to increase the size of your position, so the break-even point of our entire position is very close to the current market price. It also means that if prices move in a negative direction, the entire account will soon be in a negative position. However, if you adjust your stop loss in time, you can expose yourself to an overall 1R risk. As you can see, it is not the increase in positions that puts traders in a passive position, but the absence of stop-loss adjustments to reduce risk.

下面让我们通过案例来分析,或许让你更为明白这个交易法则:

比如在欧元/美元不断下跌的趋势行情中,你看到在1.2625阻力处出现一个预示入场信号的Pinbar形态。因此,你认为这里是一个关键水平位,决定在这个阻力位上方设置一个合理的止损。所以,你在1.2650价位设置止损……在确定潜在利润目标之前,我们总是先设置止损。这是因为风险管理是整个外汇交易中最重要的一环。若你不妥善管理好每一笔交易的风险,则没有可能在市场上赚到钱。

其次,在1.1900左右,你没能看到强劲或明显的支撑位,于是你决定追求更大利润的同时,还需要查看趋势是否对你有利。你预定交易风险为200美元,即比如你在1.2550处空了2个迷你手,100点止损*2个迷你手(1个迷你手=每点1美元)=200美元风险。

然后,你决定用1:3的风险回报比进行加仓交易,于是你把初始盈利目标设置在1.2250,并计划加入两个头寸,一个在盈利达到100点时加仓,另一个则在盈利达到200点时进入。之所以这样计划是因为市场处于强趋势之中,且策略基于价格行为交易的技巧,若能遇到好的机会,趋势将会持续。

来看以下图表:

(credit: 1. You short $20,000 Euro/dollar at $1.2550 with an initial stop at $1.2650, a $200 risk exposure and a potential profit of $600.2. Initial stop level 1.2650; key resistance level 1.2625; admission level 1.2550)

当价格朝着有利于方向运行时,你决定在1.2450价位上加仓20,000美元头寸,如此,你的全部头寸扩大到40,000美元或者说你的每个点值4美元。如果价格顺利到达1.2250,则你的潜在盈利将达到1000美元。这时,你将整个仓位的止损调整至1.2550这个第一入场位,即便全部头寸止损,整体风险保持在200美元。

(图文注解:1.你在1.2450位置加仓20,000美元,然后将所有仓位止损调整在1.2550。如此,你的第一单即便止损也无损失,而加仓部分将盈利100个点,这样整体风险保持200美元,潜在收益则由此前的600美元增加到1000美元;2.创始止损位1.2650;3.关键阻力位1.2625;4.首仓与加仓止损都在1.2550(首仓入场位);5.加仓位置1.2450。)

接下来,如果价格继续朝着有利方向发展,你又决定在1.2350位置进行金字塔加仓20,000美元。这也意味着你的整体头寸上升至60,000美元,亦或者说每个点值为6美元。假如价格下跌至目标1.2250,你的潜在盈利为1200美元。你该看到,目前的预期盈利是你首仓600美元的两倍,目前的止损风险为零。

此时,你将两个仓位的止损下调至1.2450,从而将首仓盈利锁定为200美元,第二仓位变成在盈亏平衡点上,从而将200美元的风险转移到第三笔新头寸上来。如此,整体仓位的风险为零。你需要注意的是,价格距离你整体仓位的盈亏平衡点仅100个点,所以目前面临最坏的情况是不再延续下跌趋势,且在盈亏平衡点上触发止损……乐观的假设是,你拥有一次不冒任何风险就能获得巨大的潜在盈利。

(图文注解:1.你在1.2350加仓20,000美元,止损调整在1.2450。首仓利润锁定200美元,第二仓盈亏平衡。如此,你将首仓的200美元风险转嫁给了第三仓。所以,整体交易的风报比为1:6,即用200美元风险博取1200美元的潜在利润;2.初始止损位1.2650;3.关键阻力位1.2625;4.在1.2550做空20,000美元(首仓),且将所有三个仓位的止损调整至1.2450;5.在1.2450加仓做空20,000美元(第一加仓);6.在1.2350做空20,000美元(第二次加仓)。)

若价格持续朝着有利方向下跌,并如预期般在1.2250目标触发止盈,那是件多令人激动人心的事情,你成功抓住了一个1:6的风险回报比交易。这个例子展示了如何利用一个欧元/美元强劲下跌趋势,在冒着不超过损失200美元的风险,获得了1200美元的利润。

(图文注解:1.价格持续朝着有利方向运行,并如预期般触发了1.2250目标,所有三个仓位均顺利止损,盈利1200美元,且未造成任何的损失。这就是如何在浮盈情况下安全加仓的交易;2.初始止损位1.2650;3.在1.2550做空20,000美元(首仓),现在所有三个仓位止损移至1.2450;4.在1.2450第一次加仓20,000美元;5.在1.2350第二次加仓;6.止盈目标1.2250触发。)

Why I don't easily expand my position

There are definitely many traders confused about the expansion of positions, and I'm not going to talk too much about it today. If you want to know more about position management, you can read my article on Forex Trading Management.

Now I would like to say, in the transaction, I will not easily expand the position, but also do not recommend you to do so. But that depends on the market, and what you do is up to you. Personally, I don't think it makes much sense to expand your position. Although it sounds like a good decision to expand your position in a float, it actually limits your profit. Our principle in currency trading is to profit maximization, not minimize.

In addition, you can see that as you expand your position in a trade, you are also reducing the profit maximization of your position in a favorable situation. It also means that when the price moves in a favorable direction, what you can control is actually a small part of the most profitable segment of the trade... ... In fact, it's not as ideal as what you see above, to keep your profits running.

请记住,交易目的在于最大化盈利的同时,也最大限制你的亏损……我发现的是,扩展仓位事实上是将盈利最小化,而这就是我为什么不会轻易进行仓位扩展的原因。

我通常使用的

Therefore, to clear the head when trading, either on the whole to gain the expected goal of trading profits, or on the strong trend under the position expansion operation... ... But I never blindly expand my position to limit profitability.

总结

最后,我想说的是,你不要试图在每笔浮盈状态下加仓,而必须在交易前确定好交易计划。假如市场朝着有利方向发展,你将会在什么地方进行加仓。若不想错过任何机会的话,你必须在进入市场之前作出尽可能多的预判方案,以此来应对市场的不确定性,如此才能让你的交易变得更具客观性和逻辑性。

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