Pyramiding Calculator
Enter first and add-on prices and quantities to get the combined average price, total quantity and add-on notional.
Results
Fill in the inputs and click Calculate.
- Combined Avg
- –
- Total Quantity
- –
- Add-on Notional
- –
Risk disclaimer
Estimates only. Adds increase exposure; losses can grow fast on a reversal.
What is pyramiding?
Pyramiding adds to a position in the direction of a profitable move. Because the add-on price sits beyond the original average (higher for longs, lower for shorts), the combined average shifts with the trend.
It raises both exposure and average cost: bigger gains if the trend continues, faster give-back on a reversal.
How to use
- Enter the first entry price and quantity.
- Enter the add-on price and quantity.
- Click Calculate for combined average, total quantity and add-on notional.
Formula
- Avg = (First×Qty1 + Add×Qty2) ÷ Total qty
- Total quantity = Qty1 + Qty2
- Add-on notional = Add price × Add quantity
Example
Long first 20,000×1, add at 21,000×1 → avg 20,500, total 2.
Short first 20,000×1, add at 19,000×1 → avg 19,500.
FAQ
Is pyramiding always better?
No. It amplifies trend gains but raises the average and the reversal drawdown — cap total size and keep a stop.
vs averaging down?
Pyramiding adds with a winner; averaging down adds to a loser to lower the average. Risk profiles differ entirely.
Can these calculations be executed automatically?
Yes. Work out the parameters and risk limits here first, then hand the same rules to a quant system such as CubeQuants so you don't have to place orders manually. Fills still depend on your exchange, so verify with a small size first.