This is a different discussion. The point is that whatever system and size you choose, then all in all out will perform better in the long run. What entry, exit and size system you use is up to you. --Ishmael
How about this situation? Let's talk about you, you position trade 25 contracts on the basis of "all in & all out", you admitted that you do not know where an optimal get out point is, just like most simply can't know where it is. So you are out for +80 points, because your trailing stop got hit. But what if you traded your usual 25 contracts plus an additional I don't know, say extra 5 contracts which you would not have closed when your trailing stop got hit, but kept them till the price has done one of the 2: 1) Reached your entry ie brake evens on 5 contracts; 2) Price offered you another 80 points. I know that you would probably say that you would have re-entered with 25 contracts, yet, in my case life is not that perfect
JSSPMK who on earth do you think you are, I would take the whole 30 lots off at 160 geeze! It's simple to call a top, anyone can do it!
The more decisions made, the more mistakes that could be made. Keep it simple. All in , All out works better over the long haul. This has been established earlier in this thread. --Izzy
Being a new convert, would you change mind sometime later? http://www.elitetrader.com/vb/showthread.php?s=&threadid=64098&perpage=40&pagenumber=24 QUOTE Posted by Buy1Sell2 on 04-05-06 09:48 AM: I will be shorting the 126 calls tomorrow-- I will scale in. Posted by Buy1Sell2 on 04-06-06 12:41 AM: I began the scale in selling of OTM 126 calls in GECM6 today. If prices rise, I will be scaling in also at higher strikes in increasing numbers. Posted by Buy1Sell2 on 04-28-06 01:51 AM: I began the scale in of short 128 calls today. Posted by Buy1Sell2 on 04-28-06 11:07 PM: I will just continue the scale in of higher strike short calls. This is where I make most of my money generally-- I am never in full on the first short sale and I give plenty of room for adding positions. Posted by Buy1Sell2 on 04-12-07 11:59 PM: Research of my trades over the last 12 years (I have not had time to backtest the rest of the years) has revealed that on one individual trade I may have done better by averaging or scaling in, but longterm I would have been much more successful by entering the whole position at once. Reason being, that I did not have full position on from time to time when big moves occurred. --Also, stops are always determined on the charts so the stop is always at the same area. I just use correct position sizing to avoid losing more than 2 percent of liquid net worth. UNQUOTE
No Volente-- I gave more back by not exiting the whole position at a higher level where you think I should have scaled out. I exited the whole position at a lower level. Scalers would have pulled the plug at 10 pts, 20 pts etc. They would not have started scaling at 100 pts anyway. Let's get real--
i'm assuming that in 06/07 b1s2 had a lot less cash , and scaling in and out was necessary, where as now riding it for 60-100 points while moving stops is more profitable, assuming you dont ned to withdraw from your acct
All you have done is proven my point. You claimed you could find the optimum exit point on every trade, yet your trade's show that you have given up 40+ % of profit on every trade by exiting all at once. This shows that "all out" is less profitable than scaling out.
On the count of three you will awake & feel well & refreshed, you will never click on this thread again, in fact you will forget that you've ever read it & you will also have no recollection of how much you had to pay me to make you forget this thread... 1... 2... 3...