"Scaling out" is inferior behavior

Discussion in 'Strategy Building' started by Buy1Sell2, Oct 18, 2006.

Do you scale out of positions?

  1. I always scale out

    113 vote(s)
    14.1%
  2. I scale out most of the time

    228 vote(s)
    28.5%
  3. Most of the time, I do not scale out

    189 vote(s)
    23.6%
  4. I never scale out

    270 vote(s)
    33.8%
  1. Buy1Sell2

    Buy1Sell2

    ???
    I am certainly not working outside of it to justify myself. The premise is exactly the same. It's simple math. What I am passing on is the result of years of experience, not just theory. Thanks. :)
     
    #1011     Mar 26, 2008
  2. Buy1Sell2

    Buy1Sell2

    Thanks SS. This is exactly right. -- :)
     
    #1012     Mar 26, 2008
  3. Still waiting. How surprising...
     
    #1013     Mar 26, 2008
  4. B1S2 and I disagree on many topics, including drawdown, and some of his positions I would describe as a bit dogmatic, but he is a nice enough guy.

    According to him, his return last year was north of 80% (90 something, I think). Not that it is my business, nor anyone else's.
     
    #1014     Mar 26, 2008
  5. http://www.elitetrader.com/vb/showthread.php?s=&postid=1752107#post1752107
     
    #1015     Mar 26, 2008

  6. Hi SS,
    Can you explain this please....80%+ of what.

    regards
    f9
     
    #1016     Mar 26, 2008
  7. Buy1Sell2

    Buy1Sell2

    I actually don't see where my returns are germane to the discussion here. They would have to be compared to someone taking the exact same signals/trades and scaling out as opposed to my not scaling out. This is where the discussion is aimed at. Not a one upmanship contest between myself and someone daytrading all day every day etc etc. My yearly return is irrelevant here as we are discussing a very simple math equation--. Thanks though SS!:)
     
    #1017     Mar 26, 2008
  8. taowave

    taowave

    At this point I would settle for one simulation clearly demonstrating that full liquidation is superior to scaling..

    With that said,I ask the OP if he places any value on risk adjusted returns(volatility adjusted),and has indeed looked at them vs absolute return.

    I think NOT
     
    #1018     Mar 26, 2008
  9. Buy1Sell2

    Buy1Sell2

    Volatility adds to the calculation of how large your position should be ie how large your stop is determines position size so as to not exceed the 2 percent of TLNW. Once position size is determined, then the full position for your stop can be initiated. Very simple, but accurate and effective. :)
     
    #1019     Mar 26, 2008
  10. Buy1Sell2

    Buy1Sell2


    The Germans have nothing to do with it. :)
     
    #1020     Mar 26, 2008