This is a method of trading commodity futures contracts in such a way that when the profit from a single trade equals the current margin for the commodity, the profit is used to self-finance an additional futures contract. This self-financing process can take either of two methods: Pillar trading or Pyramid trading.
The Pillar trading method involves adding one futures contract to your position during each self-finance round, while Pyramid trading adds one futures contract - but from each active futures contract with each Trade Commodity Finance. This results in a doubling of your position during each self-financing step.
Both pyramid trades and pillar trades (hereinafter referred to as pyramid trades) should exhibit several characteristics which make them high profit potential candidates. These characteristics include:
• The market is quiet and has exhibited low volatility for several months.
• The margin for the commodity is relatively low.
The market is set up for a major move. This is evidenced by extreme commercial/public signal, as well as a 12-month high or 12-month low on the daily price chart with a likely 1-2-3 Top or Bottom price chart pattern in the process of unfolding.
A very important note: The biggest danger in any futures trade is a limit move which goes against your position. With a single futures contract, this is risky enough. With multiple futures contracts, this risk is seriously compounded. However, if you monitor the market conditions (both technical and fundamental market conditions) and the financial news on a daily basis, you will generally receive a timely warning of an impending limit move which may go against your position - giving you time to close out your position before that occurs.
The Pyramid Trading Form
The Pyramid Trading Form is at the heart of helping you to successfully implement and manage these trading strategies and the Structured Trade Finance. It contains areas that will let you monitor and track up to three commodities using this trading strategy. Each area allows for up to 7 futures contracts to be held in the pillar trade position, and up to 64 futures contracts in the pyramid trade position.
The Pillar trading method involves adding one futures contract to your position during each self-finance round, while Pyramid trading adds one futures contract - but from each active futures contract with each Trade Commodity Finance. This results in a doubling of your position during each self-financing step.
Both pyramid trades and pillar trades (hereinafter referred to as pyramid trades) should exhibit several characteristics which make them high profit potential candidates. These characteristics include:
• The market is quiet and has exhibited low volatility for several months.
• The margin for the commodity is relatively low.
The market is set up for a major move. This is evidenced by extreme commercial/public signal, as well as a 12-month high or 12-month low on the daily price chart with a likely 1-2-3 Top or Bottom price chart pattern in the process of unfolding.
A very important note: The biggest danger in any futures trade is a limit move which goes against your position. With a single futures contract, this is risky enough. With multiple futures contracts, this risk is seriously compounded. However, if you monitor the market conditions (both technical and fundamental market conditions) and the financial news on a daily basis, you will generally receive a timely warning of an impending limit move which may go against your position - giving you time to close out your position before that occurs.
The Pyramid Trading Form
The Pyramid Trading Form is at the heart of helping you to successfully implement and manage these trading strategies and the Structured Trade Finance. It contains areas that will let you monitor and track up to three commodities using this trading strategy. Each area allows for up to 7 futures contracts to be held in the pillar trade position, and up to 64 futures contracts in the pyramid trade position.
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