Pyramid Panel Practical Series Episode 2 — Pillared: As the market Advances, Increase profits by “layering” on
In Episode 1 we talked about why we built a manual panel. In this episode, we will delve into each function one by one. First is the origin of this tool’s namePyramiding.As the market trends, you add to a position in the same direction to increase profits— an “offensive” method of increasing exposure.
If averaging down is “when price moves unfavorably, you buy more to lower your average entry price (defensive),” pyramiding is its reverse.Trend-following = buy more in the direction of profit (offense). The idea is to layer onto winning positions to maximize gains.
When you feel a trend or breakout will extend further, holding one unit vs adding along the extension yields significantly different final profits. Pyramiding is a method toride the trend by increasingly adding in steps.
However, doing this by hand is demanding. In the middle of a strong upmove, placing multiple limit orders like “add +1 here, +1 higher up” while calculating price ranges is too slow to catch up. By the time you notice, the price you wanted to add at has already passed.“I want to add, but I can’t finish adding”— This is the most wasteful miss in trend following.
A move with Pyramid Panel
With PYRAMID PANEL, you simply select the“Pyramid” mode,width (how many pips apart) and number of layers, and press buy (or sell). In the direction of the trend, limit orders are lined up at regular intervals. As the price moves, those limit orders execute in turn to add on.
Stops and take-profits are automatically attached to all orders, and the per-order lot size is calculated from risk%. No “late addition” or “missed add,”you can smoothly ride the trendwith the pyramid mode.
It’s important not to lose the profits gained when price reverses. PYRAMID PANEL offers one-clickmove to breakevenandtrailingas a package. When the move extends to a certain degree, move the entire position to breakeven to stay in a “not losing” state, then chase further gains with trailing — enabling quick cycles of “growth → addition → protection.”
Pyramiding presumes a continuing uptrend. In ranging markets that oscillate, profits can be eroded or breakeven can be breached right after additions.Best used in clear trend or breakout situations.
Also, the more you add, the larger the total lot size equals the risk.Use limits on layers, width, and lots, and combine with breakeven moves and trailing. Since this is a semi-discretionary tool, the final decision to add or not should be yours. FX/CFD trading involves risk; final trading decisions are your responsibility.
※This article is for information provision and is not investment solicitation. The listed performance results are past performance and do not guarantee future profits. FX/CFD trading involves risk. Please make investment decisions at your own responsibility.