Confirmation-first pyramiding with price and time stops

Limited-pyramiding after confirmation

The documented method opened only part of the intended position and added size after the market confirmed that the entry was correct.

Further size was added only while the trade continued in the intended direction, a practice described as limited-pyramiding. Confirmation is post-entry movement in the intended direction. Add-on size waited for that movement, and further size was taken only while the trade still moved as planned.

Confirmation instead of averaging-down

Adding to a confirming position was preferred to averaging-down after an adverse move.

Averaging-down means adding size after an adverse move in an attempt to improve the average price. The documented workflow treated confirmation, not an adverse move, as the condition for more size.

A price-stop under the entry

Price stops were placed under the entry price so a wrong-way move could be closed before it damaged working-capital.

A price-stop is a pre-placed exit beneath the entry price that closes a position if it moves the wrong way.

A time-stop on idle-positions

Time stops were used to exit trades that failed to move as intended and instead drifted without direction.

An idle-position neither follows the planned path nor hits the price-stop. Aimless, non-progressing positions were treated as especially harmful because they tied up capital that could be used on clearer opportunities.

Closing a stalled trade with a time-stop was presented as a way to keep working-capital free for later setups. Working-capital stays available for later setups only if losing or idle positions are closed.

A simple rule that is hard to apply

Using both a price bound and a time bound to cut losses was described as a simple rule that is hard to apply in practice.