The pyramiding option enables you to increase or decrease a position in increments.
To access this feature in the Trading Strategy wizard, click on the Modify Trading Strategy parameters button, and then click on the Pyramiding tab.
If you check the box to Pyramid/Scale into positions, your model can enter trades multiple times while the entry condition or conditions remain true.
This box lets you enter a max number of positions. Note that the max number of entries per position won’t always occur if an exit occurs before the max number of entries is reached.
Let’s look at an example on the rules tab. Note that the Trading Strategy is set to generate a buy long market order if 1 of the following is true.
The entry rules are RSI < 30, and close >= the entry price multiplied by 1.02, which is another way of saying that the price increased 2 percent over the entry price from the RSI rule. So you think the market is going up and want to increase your position.
In this Trading Strategy, the entry condition of RSI fires, and if the price increase rule is met before an exit condition, the Trading Strategy will enter a second position.
If you check entries change in size, you can specify a percentage such as 50% that would make each subsequent trade half the size of the previous entry. If you want the subsequent positions to be the same, enter 100%. You can enter a value of up to 400%.
If you have multiple entry conditions and want each condition to only fire once, check the box to “Restrict each entry condition to generating one entry per position.”
The same options apply to scaling out of positions.
You can let the optimizer find the best combination of max number of entries and change in size percentage of prior entry. When the box is checked, you’ll be able to enter optimization ranges.