Pyramid Forex Trading Strategy

 

 

Pyramid Forex Trading Strategy

Pyramiding Forex Strategy

Pyramiding in forex trading strategies aim to double the profit. the way it works is similar to the Anti-Martingale strategy, which add to the position when the previous position was profit with reason and hope that the market will continue to move in accordance with our predictions.

The advantage of using this pyramiding strategy is that in a period consisting of several transactions could generate more profit. Maybe in real life is called "Aji Mumpung". Because it is so favorable conditions, we do the transaction as much as his chance only comes one time.

The disadvantage is only when the market reverse direction or reversal, last opened position into a loss, thus reducing the total profit earned.

Differences between pyramiding strategy with anti-martingale strategy is simply a matter of capital used .At the capital pyramiding strategy used for each transaction equal .Sehingga magnitude of risk due to the opening of a new position at the risk of his previous position.

Example of use pyramiding strategies:

Currently the GBP / USD is worth 1.5500. I predict prices will rise, therefore I open a Buy position at the level of 1.5500 at 1 lot.
After 1 hour turned out to be market moving up to the level of 1.5525. Instead I closed position, I analyze the results .And I predict that there will be a long bullish trend.

Therefore, because current profit Seang and conditions are good, then I should not be menyi-nyikan this opportunity to open a new Buy position at the level of 1.5525 at 0.1 lot, then up again after I open a new buy position again at the 1.5550 level. Thus at this point I have 3 pieces Buy position.

After a while, now the price is at the level of 1.5600, meaning that all three of my long position profit .Then I mnutup third position because I predict prices will reverse direction.

From the above transaction profit I get is:

The first long position profit of 100 points or $ 100
The second long position profit by 75 points or $ 75
And the third position profit by 50 points or $ 50

So the total profit is $ 225.

Just imagine seeandainya I did pyramiding strategy, maybe I just profit of $ 100 only.

There are two key to success that must be considered in using these pyramiding strategy, namely:

1. Before doing pyramiding you must ensure that the next few moments will occur long trend
2. Immediately close the position when predicting prices will reverse direction.

 

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