Pyramiding presses a trade that is already working: as price moves further in your favour by a fixed step, the strategy adds a smaller tranche to the position, up to a capped number of add-ons. It concentrates size into trends that are proving themselves.
Done with discipline it boosts returns on the best moves, but it raises average entry price on longs and increases exposure right as a trend matures, so a trailing or break-even stop on the combined position is important to avoid giving it all back on the reversal.
Example
A long adds 50% of base size every +3% in its favour, to a maximum of three add-ons, building a pyramid into a strong trend.
How Noon Barbari uses Pyramiding
Every concept here is implemented in the platform. Open the relevant docs or tool to see it in action.
Set up smart orders in noonbarbari →Related terms
- Risk
Scaling In
Adding to a position as price moves against your entry, lowering the average cost.
- Risk
Trailing stop
A stop that ratchets in the trade's favor and never moves against it.
- Risk
Position size
How many units of an asset a trade holds — derived from risk budget and stop distance.
- Risk
Take-profit Ladder
Closing a position in pieces at successively higher targets instead of all at once.