I am still learning. . But I see terminologies like “add a layer” and “add a position”.
Can anyone explain to me, or show me how to do that?.
A video tutorial will be really nice.
Please help
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That’s what Youtube offers. Google it. ‘Add a position’ is adding an extra trade to the original trade.
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So, layering is a strategy in high-frequency trading where a trader makes and then cancels orders that they never intend to have executed in hopes of influencing the stock price. For instance, to buy a stock at a lower price, the trader initially places orders to sell at or below the market ask price.
if you add to an existing position and it does not work out as expected, you must get out of more than you added. A stock will always tell you when to add to a position, when to sit tight, and when to cut bait.
There are some really nice youtube tutorials, which might come in handy. Take a look
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For this to work other market participants would require having access to Lvl2 data right?
Honestly the first time hearing this term. I’m going to look it up later in the day as well. Thanks for the explanation.
The wiki article around layering echoes the same explanation and is considered a form of stock manipulation. Basically with enough sell orders you induce buyers to lower the best ask prices. And once you fulfill the required buy volume you exit out of the unfulfilled sell orders.
Not sure I understand the context of this point though. Appears to be similar to something around martingale layering I found on some random video. Which is effectively scaling into trades on higher position sizes.
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You Can search on Google or YouTube using those specific terminologies you want. Don’t just refer one resource, try few resources until you get a clear idea.
learning is really important no way to deny but despite of having much learning attitude the result of trading can be useless if there is no regular practice.
Don’t make the mistake of thinking that adding orders can influence the price of a forex pair.
Adding positions to a winning position is a classic tactic in a successful trend-following strategy. Its a must if you’re serious about trend-following.
If the new order is added only once the initial position has gained sufficient profit to match its initial risk, the new order adds no additional risk to the account capital but doubles the profit potential from any further price moves with the trend. In theory there is no limit to how many times you can add new layers.
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True but that why many newbies give up Forex because they don’t see the trends ,which are highlighted in demonstrations on YouTube.they rarely there .As for pyramiding it’s a recipe for disaster for rookies
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most of the newbie give up from Forex after doing some losses. this is very common mistake , actually keep going is really a challenging issue.
You’re right that new traders overlook trends and their power. They are conditioned by the dramatic charts to look for 45 degree slopes to minuscule reversal patterns followed immediately (and always) by 45 degree slopes in the opposite direction to huge profits. Brokers’ sentiment indicators almost always show that most open positions are counter-trend, while broker client data shows that most clients are losing money.
I don’t find trends are rare but of course it depends on how you define a trend.
New traders pyramiding are about as rare as unicorns.
That sad about the Unicorn s lol,how long would you say on average you hold a Forex trade ??? This is a fair question for any newbie out there
Its hopefully at least several days, as my trades are taken off D1 charts. That said, repeatedly pyramiding a winner makes holding time and other usual metrics misleading - such as r:r and win rate etc. - as these are aimed at individual single trades unrelated to any other trades.
Yes I remember you.mentioning in past posts Not talking about tops and bottom. Though as one becomes a little more experienced as traders we sense that sweet spot “perfect entry”. Obviously the first entry ,so do you ever scale out some of the added position and maybe a percentage of the original position.Or do you always close the entire Trade obviously.nothing black and white
I usually (but not 100% all the time) keep all trades open until the trend shows signs of weakening: and then close all. The signs of weakness are for me the correct application of candlestick pattern theories - they’re better exit signals than entry signals though I seem to be out on my own with that theory. The beauty is that if you’re in a trend and get a false exit signal and get out into cash, then you’ve almost certainly simultaneously got an opportunity to re-enter the same trend.
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Is your entry fixed size say 2 per cent ,or do you save
Some back if the charts move closer the stop.I tend to do this now as I’ve changed what I’m looking for on the charts.Langers who use to use the forums use to do it religiously
Yes I always use a fixed percentage capital risk but the entry top SL distance varies depending on the market and its current volatility, as I try to use ATR (or a multiple of) for this and then adjust the size of the position to a 1% capital risk.
I respected langers, I remember him. He was no fool in trading but a bit naiive when it came to forums. Not everyone here is as positive.
Fair point we all looking for different things or seeing things differently ,which I guess is one of the more intriguing things about trading
He was probably a tad sensitive deep down.
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