Let's Learn Amibroker: Scaling In (Part 2) - Adaptive Position Sizing and Counting Pyramids
Free Amibroker video course at http://www.asxmarketwatch.com/
This is the second video for Scaling In using Amibroker Formula Language. It will give you more tools to use in your own back testing!
This example scales in, or pyramids into positions as long as price is above our Moving Average. As you can imaging, we could end up with LOTS of positions if it's above the Moving Average for quite some time.
To limit positions I show you how to add a Counter, and we count three positions and then stop buying.
I also show you how to change your position size - reduce the amount we are buying - each time and with each successive pyramid. The idea behind that is we are adding to positions, but not TOO much, as the trend evolves and becomes likely to reverse.
Website: http://www.asxmarketwatch.com/
Happy trending!
Dave McLachlan