"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. The problem with B1S2 is he knows his methodology very well, but he thinks everyone else should do it his way too!:rolleyes:
     
    #1631     Aug 21, 2017
  2. comagnum

    comagnum

    You've not done the math properly on this. You need to be in winners with full position to reap the best benefit or to lessen losses.

    I said I scaled in - that means adding on to winners. When I am in a winner my size is up to 4 times larger than it is on losing trades. That equates to the avg winners profit being much larger than my avg losing trade - that math will make your account surge and is why most pro traders scale in/out.
     
    #1632     Aug 21, 2017
    Xela likes this.
  3. JSSPMK

    JSSPMK

    Inferior? Wrong. Why? Because there are many variables that can influence end result in both strategies.

    If you want +20 point gain, then I'd make more $ scaling out after +2 gain if +20 is hit 1/10 attempts. Again that's subject to distribution of position (how much is scale out).
     
    #1633     Aug 21, 2017
    sss12 likes this.
  4. Buy1Sell2

    Buy1Sell2

    This means that when you are in a winner, you never have your full position on at the best price. Thus, you choke off profits.---Scaling in or out is not a good idea over the long haul--It's readily apparent.
     
    #1634     Aug 23, 2017
  5. Buy1Sell2

    Buy1Sell2

    No--no they don't.
     
    #1635     Aug 23, 2017
  6. Overnight

    Overnight

    Wow, this thread has been going on for 11 years. To me, scaling in/out vs. full in/out really depends on the type of trading the trader can mentally handle. Whichever method works for the individual most of the time is the best trading method for them. I am currently in the mindset of full in/out. I've tried both ways live, and find full in/out works better FOR ME. That doesn't mean it will work as well for someone else.
     
    #1636     Aug 23, 2017
  7. Pekelo

    Pekelo

    I just wanted to post the same. Pretty ridiculous debate because there is no objective answer. Both can work, sometimes one is better than the other other times, you got the picture.

    So why are we still debating this???
     
    #1637     Aug 23, 2017
  8. Buy1Sell2

    Buy1Sell2

    Yes there is. This is discussion about what is better over the long haul. --and it is clearly better to not scale in or out.
    ---Scaling produces inferior results.---
     
    #1638     Aug 23, 2017
  9. Pekelo

    Pekelo

    OK just to prove you quickly wrong: I have a strategy that enters when price touching the BB. Guess what? Sometimes it is not a complete touch. By scaling in and entering a bit early, I don't miss out when this happens. The same with scaling out, exit is at the BB touch, but sometimes the price just gets close without touching. By scaling out at least with half the position I got out before price returns to my entry level...

    If there was a clear answer, this thread should have ended 6 years ago. :)
     
    #1639     Aug 23, 2017
  10. Buy1Sell2

    Buy1Sell2

    Here is the clear answer
     
    #1640     Aug 24, 2017