Hellow guys, Welcome to my website, and you are watching Trading Strategies: Pyramiding and Scaling Out. and this vIdeo is uploaded by Unger Academy USA at 2019-08-09T04:58:11-07:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | Trading Strategies: Pyramiding and Scaling Out |
| Video Uploader | Video From Unger Academy USA |
| Upload Date | This Video Uploaded At 09-08-2019 11:58:11 |
| Video Discription | ► Do you want to understand if we can help you with your trading? Book a FREE call: https://autc.pro/callyt?utm_source=yt-_f5mB_Q1GpM&sl=yt-_f5mB_Q1GpM ► If you want to learn more about Systematic Trading check out my FREE Masterclass: https://autc.pro/MasterENGyt?utm_source=yt-_f5mB_Q1GpM&sl=yt-_f5mB_Q1GpM ► You can pick up your FREE copy of my last book while supplies last: https://autc.pro/bookyt?utm_source=yt-_f5mB_Q1GpM&sl=yt-_f5mB_Q1GpM ABOUT ME: Andrea Unger here, full-time Trader since 2001 and the only one to win 4 times the World Trading Championship with real money. Thanks to these results I am often invited as a speaker at conferences in Europe, the USA, Asia, and Australia. I am also the author of several books, including the first in Italian about Risk Management in Trading, also translated into Chinese and English. I provide decades of experience, trials, victories, and defeats with which I created the UNGER METHOD™: a scientific, systematic, replicable, and universal method with which, in just 4 years, more than 1,000 traders have managed to become autonomous. In fact, you may know that studies show that only 25% of traders make money, but 90% of these do it with systematic trading… How come trainers almost always only teach discretionary trading then? Becoming a trader is harder than you think, but if you have passion, will, and sufficient capital, you'll learn how to code and develop effective strategies, manage risk, and diversify a portfolio of trading systems to greatly improve your chances of becoming successful. Be sure to subscribe for weekly videos on Systematic Trading. ► Where to follow and listen to Andrea: Instagram: https://instagram.com/unger_academy/ Facebook: https://facebook.com/UngerAcademy/ Website: https://ungeracademy.com/ Facebook Group: https://facebook.com/groups/ungeracademy #AndreaUnger #UngerAcademy #SystematicTrading Hi guys, hi from Andrea Unger. Pyramiding or scaling in, scaling out? Well, in one of my past videos, I was mentioning how dangerous it was to average down your position. It was dangerous because you have from a psychological point of view a not acceptance of losses, dangerous because it exposes more and more on a weak underlying, it's going down and you buy more and more and for many other reasons. So somebody wrote on my blog: "It's fine, I like this, but what's your opinion about scaling in or pyramiding, increasing a position, a winning position. So here we go. Pyramiding makes sense in my opinion only if you keep constant control of your risk and if this still lets you make more money netting the positions from commissions costs and so on. What does this mean? Imagine that today you enter with one contract and you keep this position for 10 years. 10 years it goes up, up, and you make a lot of money. If every month you would jump in with another contract, in the end, you would have more money, this is clear because the position went up, but if you entered with the whole sized you distributed along the path at the very beginning, you understand immediately, you will have even more money, because every single contract would have gained the whole move, while scaling in the contracts entering late, obviously, make less money because they aim to a higher level, so they have a smaller distance to travel, but you don't know from the very start if the move will be that big. So this is a sort of an anti martingale okay? Somebody sales this as an anti martingale technique and so on. Does it make sense? It makes sense if, first of all, you have these long-lasting position, long horizon, because obviously, you have to take advantage of it. Imagine that you enter today here and you decide to enter with 1 contract because 1 contract is the size that keeps your losses, in case of stop-loss, below 2% of your equity. 2% is your decision, my decision in this case, okay? My decision is 2% because my risk profile is telling me that 2% is fine with me, okay! Now, once your position goes up, it might happen that after 1 month being here, you have this portion of open position profits and this portion of gain could allow you to add 1 more contract, because the new capital you have closed position plus opened position applying still the 2% of risk, would allow you to absorb the stop-loss with 2 contracts instead of 1 because you have more money so you might have a higher exposure. Consider also that after this move you might have moved your stop loss up, you know I don't like trailing stop we discussed it, but on such a long time horizon you obviously adjust the stop. So imagine that the new level of the stop, if I exit here with my contract I would lose only 1% so I could add a second contract because pulling out two contracts would still keep my total losses on the current stand of my equity below 2%. |
| Category | Education |
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