{"id":659494,"date":"2025-05-21T15:00:18","date_gmt":"2025-05-21T13:00:18","guid":{"rendered":"https:\/\/ftmo.com\/?p=659494"},"modified":"2025-05-21T15:24:32","modified_gmt":"2025-05-21T13:24:32","slug":"successful-pyramiding-can-lead-to-extraordinary-returns","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/successful-pyramiding-can-lead-to-extraordinary-returns\/","title":{"rendered":"Successful pyramiding can lead to extraordinary returns"},"content":{"rendered":"
In <\/span>the <\/span>next <\/span>part <\/span>of <\/span>our <\/span>series <\/span>on <\/span>successful <\/span>FTMO <\/span>Traders, <\/span>we <\/span>will <\/span>look <\/span>at <\/span>a <\/span>trader <\/span>who <\/span>successfully <\/span>used <\/span>the <\/span>method <\/span>of <\/span>increasing <\/span>positions <\/span>in <\/span>a <\/span>profitable <\/span>trade\u2014<\/span>and <\/span>his <\/span>return <\/span>was <\/span>indeed <\/span>above <\/span>average.<\/span><\/em><\/p>\n Increasing <\/span>positions <\/span>in <\/span>a <\/span>trade <\/span>that <\/span>is <\/span>already <\/span>profitable <\/span>and <\/span>moving <\/span>in <\/span>the <\/span>expected <\/span>direction\u2014<\/span>also <\/span>known <\/span>as <\/span><\/a>pyramiding\u2014<\/span>is <\/span>a <\/span>strategy <\/span>that <\/span>allows <\/span>a <\/span>trader <\/span>to <\/span>boost <\/span>the <\/span>profit <\/span>potential <\/span>of <\/span>a <\/span>position <\/span>without <\/span>unnecessarily <\/span>increasing <\/span>risk.<\/span><\/p>\n At <\/span>first <\/span>glance, <\/span>this <\/span>may <\/span>seem <\/span>like <\/span>a <\/span>simple <\/span>task, <\/span>but <\/span>only <\/span>a <\/span>few <\/span>traders <\/span>manage <\/span>to <\/span>apply <\/span>this <\/span>method <\/span>of <\/span>adding <\/span>to <\/span>their <\/span>positions <\/span>successfully. <\/span>Most <\/span>traders <\/span>tend <\/span>to <\/span>close <\/span>their <\/span>positions\u2014<\/span>or <\/span>at <\/span>least <\/span>a <\/span>portion <\/span>of <\/span><\/a>them\u2014<\/span>once <\/span>they <\/span>reach <\/span>a <\/span>certain <\/span>profit. <\/span>In <\/span>the <\/span>worst-<\/span>case <\/span>scenario, <\/span>they <\/span>add <\/span>to <\/span>losing <\/span>positions, <\/span><\/a>hoping <\/span>the <\/span>market <\/span>will <\/span>eventually <\/span>reverse <\/span>and <\/span>yield <\/span>even <\/span>more <\/span>profit <\/span>than <\/span>they <\/span>would <\/span>have <\/span>gained <\/span>at <\/span>the <\/span>original <\/span>entry <\/span>point. <\/span>However, <\/span>this <\/span>approach <\/span>unnecessarily <\/span>increases <\/span>the <\/span>risk <\/span>of <\/span>the <\/span>trade, <\/span>in <\/span>addition <\/span>to <\/span>any <\/span>potential <\/span>return, <\/span>and <\/span>we <\/span>strongly <\/span>advise <\/span>against <\/span>it <\/span>for <\/span>most <\/span>traders.<\/span><\/p>\n As <\/span>we <\/span>mentioned, <\/span>our <\/span>trader <\/span>managed <\/span>pyramiding <\/span>at <\/span>the <\/span>highest <\/span>level <\/span>during <\/span>the <\/span>trading <\/span>period, <\/span>and <\/span>his <\/span>equity <\/span>curve <\/span>reflects <\/span>that. <\/span>Despite <\/span>a <\/span>few <\/span>drawdowns, <\/span>he <\/span>remained <\/span>in <\/span>positive <\/span>territory <\/span>from <\/span>the <\/span>beginning. <\/span>Fortunately, <\/span>the <\/span>periods <\/span>of <\/span>growth <\/span>were <\/span>longer <\/span>and <\/span>steeper, <\/span>so <\/span>the <\/span>end <\/span>result <\/span>certainly <\/span>made <\/span>the <\/span>trader <\/span>happy. <\/span>We, <\/span>in <\/span>turn, <\/span>were <\/span>pleased <\/span>with <\/span>his <\/span>high <\/span>consistency <\/span>score.<\/span><\/p>\n Another <\/span>positive <\/span>is <\/span>the <\/span>fact <\/span><\/a><\/p>\n
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