Pyramid Position Sizing Calculator
Split a position into scaled tranches — a decreasing pyramid, equal thirds, or an increasing build — and see the capital in each add.
How it works
Pyramid weights = n, n−1, …, 1 · Tranche amount = capital × weight ÷ Σ weights
Pyramiding scales into a position across several buys instead of committing everything at once. A classic pyramid puts the largest tranche in first and shrinks each add, so your average cost stays near the initial entry and later adds only extend a winner. An inverted build does the opposite — small first, largest last — which presses a confirmed trend harder but drags your average cost up and raises risk if the move reverses.
Worked example
Deploying $9,000 across three tranches in a 3:2:1 pyramid uses weights summing to 6. Tranche one gets 3/6 = $4,500, tranche two 2/6 = $3,000, and tranche three 1/6 = $1,500 — front-loading the position so most of your capital sits at the best price.
Frequently asked questions
What is pyramiding in trading?
It is adding to a winning position in stages rather than buying the whole size at once. Each add is a separate tranche, and the sizing pattern — decreasing, equal, or increasing — determines how your average cost and risk evolve.
Why put the largest tranche first?
A decreasing pyramid keeps your blended cost close to the initial entry, so later adds mostly ride profit you have already earned. Adding ever-larger amounts as price rises pushes your average cost up and concentrates risk near the top of the move.
Does pyramiding reduce risk?
It spreads entries out and lets you commit more only as a trade works, but total risk still grows with each add. Pair it with a stop that moves up as you scale so the whole position’s risk stays controlled.
Related calculators
Educational estimate, not investment advice. Trading involves risk of loss.