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3. Commodity Pillar Trading Examples

There are two major strategies for internally-financed trading. This chapter contains commodity pillar trading examples of trading multiple futures contracts in your position using the pillar strategy. It is the least risky of the two strategies because you only acquire one contract with each applicable price (profit) increase.

The reader is advised to print a copy of the Pyramid Trading Form^TM and become familiar with it (this form is fully described in Appendix C). While working through the examples, load a copy of the form into your Excel program and enter the data into the form as each example progresses to gain an understanding of the process and see the results.

All of the examples in this trading course have been developed to help you understand how to use the Pyramid Trading Form^TM. Because of this, it is important that you enter the data for each example into this form to learn what this form does, and what it is telling you. You should also print out and refer to the price charts contained in Appendix B.

A.   Background Information

Special Note: Most of the content of this chapter has been omitted in this FREE course. Intact chapter information is available only with the complete Commodity PYRAMID Trading Home Study Course^TM.

Trade Summary

This Pillar Trade example resulted in $12,650 profit (before commissions). During the trade, your total risk was confined to $400 or less.

You should also know that if you had traded only one futures contract (with a 93.79 entry price, and a 94.92 exit price), your gross profit would have been $2,825.

The next chapter covers Commodity Pyramid Trading Examples.

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