Pyramid Anti Martingale Methodology in Forex
In this note we try another strategy. This strategy is called Pyramid Strategy. In this Strategy, it is his goal to double profits. The way it works is similar to Anti Martingale’s strategy, which adds to the position where the previous position is being profitable with the reasons and expectations that the market will continue to move in accordance with our predictions.
In this note we try another strategy. This strategy is called the Pyramid Strategy. In this Strategy, it is his goal to double profits. The way it works is similar to Anti Martingale’s strategy , which adds to the position where the previous position is being profitable with the reasons and expectations that the market will continue to move in accordance with our predictions.
The advantage of using this strategy is that in a period consisting of multiple transactions it can generate more profit. Maybe in real life this is called “take advantage of opportunities for personal gain”. Because once the conditions are favorable, we do as many transactions as if the opportunity only comes 1 time.
The disadvantage is only when the market reverses or reversal occurs, the last position opened into a loss, thus reducing the total profit gained.
The difference between a pyramiding strategy and an anti martingale strategy is just a matter of capital used. In the capital pyramiding strategy used for each transaction the same magnitude. So the magnitude of risk due to opening a new position equal to the risk of previous positions.
Use of Pyramid Strategy
Currently GBP / USD is worth 1.5600. I predict the price will go up, therefore I opened the Buy position at that level 1,5600 by 1 lot.
After 1 hour the market moves up to the level of 1.5625. Instead of closing the position, I do the analysis. And the results I predict that there will be a long bullish trend.
Therefore, because the current profit and condition is good, then I should not waste this opportunity by opening a new Buy position at the level 1.5625 of 0.1 lot, then after rising again I open a new buy position again at the level of 1.5650. Thus I currently have 3 Buy positions.
After a while, now the price is at the level of 1.5700, which means that my three long positions are profit. Then I close the three positions because I predict the price will reverse direction.
From transactions above the profit obtained are:
The first buy position is 100 points or $ 100
The second buy position is 75 points or $ 75
And the third position profit of 50 points or for $ 50
So the total profit is $ 225
Just imagine if you didn’t do this strategy, maybe only $ 100 profit.
The key to success that must be considered in using this strategy, namely:
1. Before doing pyramiding you have to make sure that in the future there will be a long trend
2. Immediately close position when predicting the price will reverse direction.