Auto-Add / Pyramiding

Automatically add to winning positions on confirmed pullbacks to maximize profitable trades.

What is Auto-Add?

Auto-add (also called pyramiding) is the practice of adding contracts to a position that's already moving in your favor. Instead of entering with your full size at once, you start smaller and add as the trade confirms your thesis.

Why Pyramid Into Winners?

Traditional position sizing risks your full size on the initial entry, before the trade has proven itself. Pyramiding inverts this:

• Smaller initial risk - Start with 1 contract instead of 3
• Confirmation before scaling - Add only after price confirms your direction
• Larger size on winners - Your biggest position is on trades that are already working
• Better average entry - Pullback entries can improve your overall cost basis

How Auto-Add Works

When configured, TradingPlace can automatically add to your position when specific conditions are met:

1. Initial entry - You enter with your base position (e.g., 1 contract)
2. Price moves in your favor - The trade starts working
3. Pullback occurs - Price retraces to a support/resistance level
4. Auto-add triggers - System adds contracts on the confirmed pullback
5. Stop adjusts - Your stop loss updates to protect the combined position

Configuring Auto-Add Rules

Set up your pyramiding preferences in account or profile settings:

• Add trigger - How far price must move before adds are allowed (e.g., 5 points)
• Pullback depth - How much retracement triggers the add (e.g., 50% of move)
• Max adds - Maximum number of add-ons per trade (e.g., 2 adds)
• Add size - Contracts to add each time (e.g., 1 contract)
• Stop adjustment - How stop moves after each add (breakeven, trail, or fixed)

Risk Management with Pyramiding

Pyramiding increases position size, which increases risk. Manage this carefully:

• Never add to losers - Auto-add only triggers on winning positions
• Define max position - Set a hard cap on total contracts
• Move stops up - After adding, your stop should protect at least breakeven
• Account for slippage - Larger positions have more execution risk

Practical Example

You go long ES at 5000 with 1 contract, stop at 4995 (-5 points):

• Price moves to 5010 (+10 points) - trade is working
• Price pulls back to 5005 (50% retracement) - auto-add triggers
• Now holding 2 contracts, average entry ~5002.50
• Stop moves to 5000 (breakeven on original entry)
• If trade continues to 5020, profit is 2x what single entry would yield

When NOT to Pyramid

• In choppy, range-bound markets (adds get stopped out)
• Near major news events (volatility can spike both ways)
• When already at max risk for the account
• On low-conviction trades (only pyramid your A+ setups)

Key Takeaways

• Start smaller, add to winners on confirmed pullbacks
• Never add to losing positions
• Always adjust stops to protect combined position
• Set clear rules and max position limits before trading