Barratt and the Four Step Pyramid

If I’m serious about extolling the virtues of pyramiding in my Position Trading book, I’d better show you convincingly how it can go beyond the usual two- or three-step pyramids that I have posted here before. So following my Three Steps to (Trading) Heaven article in which I described my three-step pyramid trade on Barratt, I’ve now gone one better by adding a fourth position as illustrated here:

Barratt and the Four Step Pyramid

The horizontal lines represent my entry prices, and I have superimposed the arrows (using an online¬†Google Drawing as demonstrated in The Chrome Book) to show that at each stage I had one more ¬£-per-point working for me. Each additional position entry corresponds with some kind of price “dip”, and in my article A “Risk Free” Trade on Barratt I described how each entry could be at relatively little risk compared with going all-in on the first entry.

This fourth step could be a step to far, but I felt it necessary for demonstration purposes, and this entire trade is guaranteed to exit with some overall profit thanks to the Capital Spreads guaranteed stop orders. To show that this pyramided position trade is real, and not one that I made up with perfect hindsight, here is the proof:

Barratt Trade

Finally, you may be interested to know that I now do all of my trading and blogging (including capturing and manipulating the pictures) using a Chromebook Pixel… no PC required!

Two Steps to Better Spread Betting:

1) Buy the Better Spread Betting Book
2) Sign up with Capital Spreads, IG, ETX Capital, or Spread Co

Disclaimer: this posting is for general education only; it is not trading advice.