Scale out or not?

Discussion in 'Index Futures' started by buzz, Jan 6, 2006.

  1. Scaling in and scaling out basically means you are not trading the optimal system and are diversifying into multiple systems of different entries and exits. I know a few good traders claiming it is THE way to trade and manage the psychology. But I would like to say it is a common fallacy to think that you got a "free" trade just because you scale out half and put your stop at break even. It's free "after the fact!" You took the risk already... It could have stopped out totally. Over many trades, you cannot say it doesn't cost you anything to scale out... That is just ridiculous.

    For me, I think I pretty much have to take a stand and be consistent. More often than not, it costs me money when I try to turn trend trader for a bit meanwhile I am most consistent when I scalp for 2 ES points. Consistency is the only way to handle drawdowns from the respective styles. I get the worse of both when I try to be someone else.

    :confused:
     
    #11     Jan 11, 2006