Thoughts on scaling up

Discussion in 'Order Execution' started by superchargedv8, Apr 4, 2020.

  1. Amahrix

    Amahrix

    For position sizing, research Kelly criterion
     
    #11     Apr 4, 2020
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    #12     Apr 4, 2020
  3. zghorner

    zghorner

    I think you need to increase your position size to accelerate your moving into a cardboard box behind the burger king dumpster.
     
    #13     Apr 4, 2020
  4. .sigma

    .sigma

    If increasing size means you're worried about larger losses you might need to wait on scaling up. Your betting size should grow geometrically proportional with your net liq. Use a % of Kelly and devise a position sizing system if you don't have one implemented already.

    Also, scaling up you'll need to manage your trade quicker. You should pay attention to your systems deviations, especially the mean deviation and you can also use the st. dev if you want. If you're targeting a larger profit target you MUST assume a larger swing in your P/L statements.
     
    #14     Apr 5, 2020
    Sekiyo likes this.
  5. This is basic, but did you adjust all parameters (stop-loss, profit take levels, whatever you use) accordingly? I.e, by same % as the % by which you scaled up?

    If *everything* is the same, there shouldn’t be a difference, unless you’re trading really large sizes, or you’re getting killed on extra commission. I’d go back to some of the losing trades and re-run them with your original trading size to see if there really is a difference.
     
    #15     Apr 5, 2020
  6. Umm no
     
    #16     Apr 5, 2020
  7. Yes i understand losses will be in line with the increase position its just for some reason it seems that scaling up the way i did with the setup i use does not seem to play nice together. So ill work on it, review more stats, and move forward. Thank you for your help.
     
    #17     Apr 5, 2020
  8. I adjusted my stop loss but i think i was being to conservative on it. Im going to scale back regroup and slowly start scaling up.
     
    #18     Apr 5, 2020
  9. .sigma

    .sigma

    Did not seem to play nice together? I'm not sure what you mean by this? Did something unexpecting occur? It might've not been scaling up but more so bad timing and once you scaled up you took a hit quick (which can happen easily), but I'm not sure why you'd be surprised? You should always calculate your profit/loss target PRIOR to order entry, so you know what to expect.

    Cheers!
     
    #19     Apr 5, 2020
  10. maxinger

    maxinger


    Based on the very limited , less than required info you gave, it seems like this got nothing to do with
    scaling in,
    scaling out,
    scaling up, or
    scaling down or whatever.


    I presume your max lot size is as per your money management.
    Past few weeks, market environment / condition has changed significantly.
    I am not sure if your trade plan is comprehensive enough to take care of changes in market
    environment / condition.
    also you changed your broker without explaining why.
    also no idea how is your mind management.

    since your write up is so imprecise, I can only assume your trading is equally imprecise.
     
    Last edited: Apr 6, 2020
    #20     Apr 6, 2020
    .sigma likes this.