"Scaling out" is inferior behavior

This was not your original assertion but at least you corrected it.

 

He's been asked do that about 20 times and he just posts happy faces.

Of course that's where his theories break down. This is why it seems that he has been using a program like Amibroker or something to do some backtesting and figures he can expect real life to work the same way.

My last post here, I'll leave it to you guys to clean this up.

 

In hindsight everything is obvious.

 

dood.

if my setup is to take 5 pts on my first contract, 8 points on my second, and 12 points on my third.

and after the first contract, to move my stop, etc.

is that "scaling out?"

it now sounds by your definition, that this would not be scaling out, because it is TRADING MY SETUP

MY SETUPS (most of them) are defined by multiple targets.

so, is this or isn't this 'scaling out' by your (made up) definition.

real people, in the real world, define scaling out as not selling the whol thing at once.

 

Bingo.

Again.

Amazing that something as simple as establishing a trading stake and then trading in and out of the position can be so hard to comprehend, isn't it? It's only been a standard technique for traders since the beginning of time.

Ok.. this is my last post for sure

 

It was my initial assertion. It's just that for me "maturity" is a long running trade with trailing stops. It is the same whether using my method or a profit target method. It makes no sense to get out of a winner until your defined exit point. It is silly to choke off profit in any methodology. I don't need to know someone's set ups to know this simple truth.

 

What are the percentage expectancies of the 5, 8 and 12 point targets

 

One could also make the case for inferior behavior with wide trailing stops and waiting to exit the trade only after an obvious reversal.

 

how is that relevant to whether or not it is scaling out?

methodology and positive expectancy are irrelevant here.

the point is that THIS IS HOW MY SETUPS ARE DESIGNED.

i am not getting into a semantical wank here.

so, let's define terms.

is that hedging, if i scale out - evne if the scaling is PREDETERMINED BY THE SETUP PRIOR TO TRADE ENTRY.

 

It's very relevant. If the expectancy is high enough at the 12 pt target
( and it probably doesn't need to be that high depending on the stop), then it will make sense to hold all for the 12pts.
or Perhaps the expectancy is more optimal at 8 or 7. Either way, once the optimal expectancy is determined, lets say 7, then it makes no sense to take half off , or any off at 5. I am talking about a system performance over time, not just one trade.