"Scaling out" is inferior behavior

That is not so, purely because All In All Out might not do well in certain strategies. A strategy that I use would not be as profitable using All In All Out in comparison with Scaling Out. I know this, because I tried & failed. All In All Out simply doesn't garnish same results as Scaling Out one does in my case, because so many times if I hadn't scaled out I would have been stopped out & unrealised gain would turn into a loss & it's as simple as that.

 

For people who know what they are doing scaling out is 'Superior' behavior.

If you can call the exact top/bottom then yes scaling out is inferior.

 

It has nothing to do with whether you can call the top or bottom. All in, All out is superior on all systems and abilities.

 

Most likely, your scale out point should really be your all out point. Some more analysis will bear that out.

 

JSSPMK is trading two systems that happen to have the same entry.

The normal arguments for diversifacation pertain.

 

FWIW, here is an article that seems to support the All in/All out strategy.

http://forums.babypips.com/show-me-money-swing-trading/8204-fib-retracement-trading-6.html#post34860

 

But if I do close 100% position at scale out point, then extended gains become impossible to achieve in my situation. Just like in Ram's link, the guy is pretty clear about not scaling out when using his strategy, which is:

1. Enter
2. If Price goes to target All out
3. If Price returns to entry, before hitting target, then All out to b.e. (don't worry about spread cost for now)

But, in my strategy I

1. Enter
2. If Price goes to 1st target Scale out 2/3
3. If Price goes to 2nd target, then remainder 1/3 is closed.
4. If Price returns to entry, before hitting 2nd target, then remainder 1/3 is closed.

Again, I am talking about my way, which is not universal. Of course when one doesn't scale out when extended gains are achieved they beat scale out results, it's understood. Yet, so many times extended gains are not possible to achieve & that is where scaled out trades become more advantageous as instead of a b.e. trade it becomes a winning trade. Where is the fallacy in that?

 

By removing the entire position at your scale out positioin, you would also avoid "runners" from losing gains.

 

Why is this zombie thread still alive? Where is there a Death Panel when you really need one?

 

Well, do what is best for you.

I think that newer traders could benefit more from scaling out because it can help with the psychology of having to face a pullback.

Just as what David Merkel said, "Scaling in and scaling out gives freedom to investors, and removing many of the psychological burdens that they bear. It doesn¡¯t mean there won¡¯t be losses. There will always be losses - but they will be easier to bear, with no panic that leads to selling off at the lows, or buying at the highs."