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How the FVG pyramid strategy works

This page is a plain-English overview of what WS Terminal does. It's deliberately high-level — enough to understand the shape of the strategy without turning it into a recipe. For the settings that control the behavior described here, see Configuration → Strategy parameters and Configuration → Risk parameters.

The core idea

When price moves fast in one direction, it sometimes leaves behind a small "gap" on the chart — a stretch of price the market jumped through without trading much in between. Traders call this a Fair Value Gap (FVG), and the idea is that price often comes back to "fill" some of that skipped area before continuing.

WS Terminal watches intraday candles for these gaps as they form during the session. When it finds one that meets its criteria, it places a limit order to enter on the retracement — it waits for price to come back into the gap rather than chasing the move. If price never retraces, the order simply expires and the bot moves on. No trade is forced.

Pyramiding (the "pyramid" part)

Once it's in a trade, the bot can add contracts when another gap forms in the same direction — building into a move that's working rather than betting everything on a single entry. How the stop is handled as the position grows is configurable; see Risk → Add-on stop loss mode. Pyramiding cuts both ways: it can amplify good moves and amplify losses, which is why position sizing and the add-on stop mode matter.

How trades end

Every trade has its exits defined before it's even placed:

  • a take-profit target,
  • a stop loss that caps the loss if price goes the wrong way,
  • optional breakeven and trailing-stop logic to protect open profit, and
  • an end-of-day flatten, so nothing is left open overnight.

There are also daily caps — a maximum number of trades per day and an optional daily net win/loss limit — so a single rough session can't spiral.

What it is — and isn't

WS Terminal trades a forward-looking pattern: a Fair Value Gap points to a price level the market tends to revisit, so the bot is anticipating a likely retracement rather than just reacting after the move the way a lagging indicator does. That's the edge it aims for — a small, repeatable statistical tendency, applied consistently with disciplined risk management. It is not a crystal ball: it doesn't read news, guarantee any trade, or know which ones will win, and some days it takes no trades at all because nothing meets its criteria. That's the strategy working as intended.

Trading futures involves substantial risk

Losing trades, losing days, and multi-day drawdowns are a normal, expected part of running this strategy — not a sign that something is broken. Any performance figures shown in the app or on the website are hypothetical or based on backtests; past performance does not guarantee future results, and your own results can differ materially. Never trade money you can't afford to lose. See the full hypothetical-performance disclosure.

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