Or "Blanket statements are inferior behavior". Then again, if it was "Scaling out is inferior behavior for my method", no one here would give a shit
Scaling out that way is definately "inferior". However, this seems to be more of an argument for accurate price targets. If you scale out first at your price target and then let it run you get different results, especially if your price target is not very accurate in relation to the high. To me, the only question is how do you know the second trades were scaled out at 4.5? You assume by "scaling out" you are selling the first bunch BEFORE the price target, not after. My question to you is, how do YOU pick your price targets. You seem fairly certain that they are as good as can be.... Thanks, TNG
Put any price target in there or any stop loss, including a scenario where you let the rest run. This is the main point of my discussion and assertion here. The math doesn't lie. This argument is not dependent on what your system is. That's why a "banket" statement can be made.
We've been over this already -- in retrospect, the scale out will always prove inferior to the "mathematically" determined optimal exit. It doesn't hold in real time however, where scaling out can prove more profitable in changing conditions in regards to method X. You are letting after-the-fact math fool you.
That doesn't make any sense to me. I'll set a price target of 2 pennies, and let the rest run. You're telling me that selling it all at 2 pennies will ALWAYS be more profitable then leaving half on and letting it run higher or lower? TNG
What b1s2 will say to you is that, given that you made more money scaling out than exiting all at 2 pennies, that your 2 penny target was wrong, and should have been higher. Now, how you realize this beforehand and apply this way of thinking in real-time is beyond me.
Well then, the title of the thread should be "setting inferior price targets is inferior behavior"!! TNG
Yes, that's the essential problem. I hate to say this but anyone with any trading experience understands that it is impossible to know in advance the optimal exit point. A number of people have pointed out the same thing here but the OP isn't buying it. Either he's some sort of super-trader or...
Just type that example up for me so I can see. Make certain that the final price target on both sides of the example is "letting it run".
I'm not 100% sure what you are asking for, but here is an example (although not a real trade I've done, but definately an example of what I have done in the past). TNG Edit: screwed up the image, will post it again.