Pyramiding: An Excellent Technique Of The Best Traders

The best traders have one more way to improve their performance - pyramiding

Thanks to that you can increase and expand your profitable position. You can pyramid with a reduced position, the same position or an increased position. Everything depends on how long the movements are and with what probability the system catches them and what is more profitable at the end of the day (week, month).

In the future I will describe best practices in pyramiding and discuss how AI will take advantage of these opportunities.

Example – entry when movement is still unlikely will be small and testing. As profit is made the automaton will add to the position. Many funds will skip these moves but this is one of the interesting niches that will be created.

In such an interesting niche is one of the most efficient funds – Medallion. Its system has only 51% of profitable entries (so say the representatives, I must admit I have a few different opinions on this).

This discourages others quite effectively but Medallion alone earns about 7 billion a year with an equity of 10 billion. Therefore, I think that the niche I mentioned is interesting and for a long time will give an advantage over traders and funds that think in classic categories of discreet trading

Trading system with only 51% of profitable trades that gave as much as... 7 billion a year! Interested?

In an interesting niche is one of the most efficient funds – Medallion. Its system has only 51% of profitable trades (so claim the representatives, I must admit I got a few different opinions on this).

This discourages others quite effectively but Medallion alone earns about 7 billion a year with an equity of 10 billion. Discover the power of AI.

Medallion’s system covers dozens of markets and hundreds of instruments.

Every day the machine inserts, according to different data, from 200 to 300 thousand positions. I will write it in words, so that there is no doubt: from two hundred to three hundred thousand positions a day.

This high number is due to the fact that the automated system adjusts the position size to the current liquidity.

After the signal from the system, the automat splits the position into 200, 300, 500 smaller positions and enters it smoothly adjusting to the current available liquidity.
The aim is to minimize costs and minimize the adverse move.

Analyzing the Medallion system and strategy is always a lot of fun, it is a fantastic challenge to try to understand what brilliant mathematicians have built.

In every aspect from signal identification to execution this is certainly something outstanding, a real gem with a huge contribution of intellectual capital.

I’ve read the book The Man Who Solved the Market by Gregory Zuckerman three times and I think it’s only three, it will probably be like scientific literature, if you want to understand something well you have to read it 8-10 times. At least.