A Ken C Special! Listening to his advice with small lot size.

[KCalhoun]

I think if you run the numbers will find that you are better off buying and selling a full position, rather than scaling in or out. This of course assumes you have some sort of quantifiable edge. With out an edge your are just burning your cash more slowly.

I scale in to keep my risk at a reasonable level. I would increase my returns significantly by taking a full position but I'm uncomfortable with the risk involved.

Anything over 10 positions is overdiversification. Rather than have 30 positions, possibly having 10 and increasing you risk per trade 3 times might result in better returns.

Here's what happens when you fall to scale. I am MAD at myself for failing to add to these massive percent winners in my small swing account.

Epic fail because I didn't add to these on the way up

 

[deaddog]

Or is it an epic fail because you didn't take a full position to begin with.