What adding to winners does to your average entry.
Pyramiding raises your average entry toward current price — a pullback that would have been survivable un-pyramided can stop out the whole stack at a loss.
Educational tool only — not financial advice. Verify figures with your broker.
The Pyramiding Calculator is an educational tool that shows what happens to your average entry price, open profit, and stop-out cost when you add to an already-winning position (pyramiding). It answers 'if I scale into this winner, where does my blended entry end up and what do I lose if the whole stack gets stopped?'
Average entry is the size-weighted mean of every fill: sum of (lots × fill price) across the initial entry and each add, divided by total lots, where each add's price is the initial entry plus its spacing steps. Open P/L per unit at the last add is the current price minus that average entry; the stop-out result is (stop price − average entry) × total lots.
It raises your blended entry toward the current price, because each add is filled higher than the last. A pyramiding average entry calculator shows exactly how far that blended cost drifts up as you stack on adds.
Because your stop applies to the whole enlarged position at a higher average entry, a normal pullback that the original single entry would have survived can now stop out the entire stack below your blended cost.
No — pyramiding adds to a position moving in your favor, while averaging down adds to a losing one. This tool models the winner case; the anti-martingale idea of scaling up on strength is different from doubling down on weakness.
Keep in mind: The figures assume your exact fill prices and spacing; they don't tell you whether the trade will keep working — and because pyramiding lifts your average entry toward current price, a pullback that would have been survivable un-pyramided can stop out the whole stack at a loss.