Multiple contract traders

[nitro]

You left out a choice: Enter with half pos, add when "right," and then either, a) out all at once, or b) out some of the pos, and let the remaining "ride" (what I do depends on the day.) Always get out at BE (which for me does not include comm.)

I chose "other" because non of these are what I do, although some combination of them approximate it...

I do not know if this was meant as a question for system or discretionary traders. I am the latter FWIW.

When trading equities, I often do what Hofferino suggested, but it is dangerous unless you are a surrogate specialist in the stock (trade it day in and day out - only trade NYSE and AMEX) and know the way it (is currently) moves, meaning, you know where there is sup/res...

nitro

 

[ElectricSavant]

I am a systems trader. I scale in 3 times and scale out 3 times. I trade the ES intraday.

I think this question should consider the nature of the systems timing in regards to the entry signal and exit signal.

Do the targets hit on schedule or are you forced to exit MOC. This would be an example of the methodology of the system. These 2 forms of exits could be addressed with different discretionary rules.

As far as entries...if your system signals the direction...what would be wrong with scaling in at better entry prices? Just so you do not miss the signal completely or achieve a worse entry position by waiting.

In my humble opinion...by just trading 1 contract...you must be right....by scaling you can minimize risk and increase profits. Many many pro futures traders trade multiple contracts throughout the day this way. It's all about risk.

Michael B.