14 — Position Sizing

Pyramiding#

Scale In✓ Mathematical
◆ The PatternAdd to winning positions in decreasing tiers

Pyramiding builds a full position across multiple entries as a trade moves favorably. Each additional tier is typically smaller than the last so average cost stays well inside the profit zone.

Risktotal = Σ tieri × (entryi − stop)
Common patterns: 4-3-2-1 units, or three equal tiers at predefined price milestones. The stop is usually tightened with each add so that risk on older entries is locked to breakeven.
// Interactive — pyramid tiers and position build-up
Tiers
Trend following. Pyramiding is a hallmark of trend-following systems — it maximizes exposure to strong moves.
Pattern bridge: Trend identification links to Indicators.
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Volatility-Based Sizing
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