This trading method includes a cardinal number and is established in a decreasing way. When the market is in the rising stage, the normal "pyramid" is to lay the foundation with larger initial purchases and fill the space for upward trading with less and less gains. In other words, when the market develops in the direction you expect, the number of contracts you suck in is getting smaller and smaller. For example, from the initial 9 contracts, 25 contracts were purchased in five batches.

The advantage of this trading method is that the reason can be seen from its reverse form, that is, the inverted pyramid. The "inverted pyramid" is an inverted pyramid formed by increasing the number of futures contracts purchased on a thin basis. Although the number of contracts is also 25, its average price is much higher than the normal "pyramid" and the risk is much greater. Because when the price rises to a very high level, the possibility of climbing up again will be relatively small, excluding commission. As long as the price is slightly frustrated, the last batch of futures contracts will immediately suffer huge losses and be completely "stuck" by market changes; Under the normal "pyramid" situation, only a small part of the futures contract of the last buyer is the first to lose money, and there is enough time to sell the remaining futures contracts. The same is true when the market is in a downward trend. Speculators first sell a large number of futures contracts to build a tower foundation, and then the amount of short selling decreases one by one, forming a "pyramid" of short selling.

Any kind of trading method has its risks, and pyramid trading method is no exception, which also needs to pay attention to strategic methods. Generally, the basement should be set up at the beginning of price fluctuation, and then completed as soon as possible within the scope permitted by trading information, so that the average price level is under the control of speculators, otherwise it will remain unchanged. When establishing the height of the pyramid, it must be built layer by layer according to the price level set in the trading plan. If the market can't change according to the set trend, you must calculate all futures contracts immediately, even if they are damaged. The reason why "chasing the high and killing the low" usually suffers heavy losses is because an "inverted pyramid" has been established. Buy more when the market is bullish, and sell less without thinking when the market is bearish. The result is to buy high and sell low. Once the market turns over, it will be caught off guard. A normal trading pyramid can avoid such mistakes, so it is a prudent futures speculation strategy.