"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 never said one should have an identical size for a trade. I only said it should all be exited at once.
     
    #201     Oct 23, 2006
  2. Cutten

    Cutten

    Exactly. Buy1Sell2 is being a hypocrite here - he admits to taking profits when the risk/reward deteriorates ("If I see an obvious bullish divergence on hourly charts, I may consider taking profits..."), which is exactly what I am advocating. But when someone else suggests exactly this, he says its an inferior method. This is an absurd self-contradiction.

    He preaches one behaviour, practises another, and then tries to criticise people who advocate doing exactly what he said he does.
     
    #202     Oct 23, 2006
  3. Buy1Sell2

    Buy1Sell2

    Exit the whole position. Your money can be better used in a trade that has better expectation. Static analysis is not good.
     
    #203     Oct 23, 2006
  4. You say you're a position trader, but your changes for position trades are based on hourly decisions.

    Technically speaking, you're not a position trader as you claimed yourself (that again you are not aware of), and you actually use scaling out for exits. - both are your fautly logics.
     
    #204     Oct 23, 2006
  5. Buy1Sell2

    Buy1Sell2

    Position trader yes--- Aware of what I do--yes. Very profitable--yes. Teacher--yes.
     
    #205     Oct 23, 2006
  6. Cutten

    Cutten

    Yes you did:

    "It is very obvious common sense to an experienced trader that if the trade still looks good, you stay in fully"

    So according to you, if a trade looks profitable, you stay in on the same "full" size. A trade with a success rate of 99% and a 50/50 payoff should be traded on exactly the same size as a trade with a success rate of 60% and a 50/50 payoff. This makes no sense, since one of them is vastly superior to the other.
     
    #206     Oct 23, 2006
  7. Buy1Sell2

    Buy1Sell2

    If I were to exit, I would take the full position, not scaling out. Sorry guys, you have missed the boat. I've got my new airplane I need to go test, I'll be back later and may respond if I see something worthy. Thanks guys!
     
    #207     Oct 23, 2006
  8. Sales pitch! :D

    Who are the "We" mentioned below, Mr Guru?

    Q

    Quote from Buy1Sell2:

    As a position trader though, I stay with my original premise and just stay short. We weather the bounces and let the trade run. If I see an obvious bullish divergence on hourly charts, I may consider taking profits and reentering at a higher price, but it needs to be very very obvious.

    UQ
     
    #208     Oct 23, 2006
  9. Cutten

    Cutten

    And if there is no trade with a better expectation? You would pass up the profit, just because it wasn't as good as that which was available before?
     
    #209     Oct 23, 2006
  10. Most gurus (read: vendors) on ET would have a similar aptitude. We'd better only join a thread when overdone. :)
     
    #210     Oct 23, 2006