How can I handle pyramiding in Market System Analyzer?
In Market System Analyzer, each trade is assumed to have one entry and one exit. As such, MSA is not designed to explicitly handle pyramiding. The reason for this is that pyramiding is not a true position sizing method. In pyramiding, additional shares/contracts are added after the initial entry. For example, in a long term trend following system, pyramiding may be used to add to a long position as the market continues to trend upward. There’s more to adding additional shares/contracts than position sizing. Because these subsequent entries take place at different times and under different conditions than the original entry, they should be viewed as comprising an additional trading system. This other “system” may have the same exit as the original system, but it has a different entry, effectively making it a different system. Viewed this way, position sizing in pyramiding should be applied separately to the original entry and to the subsequent, pyramided entries. In fact, the original e
