"Scaling out" is inferior behavior

Do you scale out of positions?

  • I always scale out

    Votes: 113 14.1%

  • I scale out most of the time

    Votes: 228 28.5%

  • Most of the time, I do not scale out

    Votes: 189 23.6%

  • I never scale out

    Votes: 270 33.8%
  • Total voters
    800
Quote from Buy1Sell2:

--it would have made better sense to remove the entire position.
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Sure. An excellent example would be when you gave back 110 pts of profits. Or just last week's 45 pts, what was 90% of your unrealized gains.

This is a rather silly thread by the way. Some short of timing is required using either strategy, but if one is like you, and can't time the market AT ALL, then he is better off scaling in and out....
 
All in All out benefits a poor system as well as a good system. Any system is better off with All in All out. This is not a thread about who times the market in a better fashion. :)
 
Quote from Buy1Sell2:

All in All out benefits a poor system as well as a good system. Any system is better off with All in All out. This is not a thread about who times the market in a better fashion. :)
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all out is a terrible system if all out consistently happens from a stop out instead of exiting with 70-100 more points of profit that the trader consistetnly gives back to the market on every trade. The math never lies.



:)
 
This is not a discussion of who has the better entries and exits. This is a discussion of maximizing a strategy whether the system is good or bad. All in All out is the superior way to increase profits or keep losses low. --Point is being missed by many. :)
 
7-11 buys all there coffee one day and sells it all the next day,farmers plant every acre in the first week and harvest it all in the last week,it only rains on wednesdays ,always and never are not extremes, coming soon to a planet near you
 
10-26-11 07:57 AM

This is not a discussion of who has the better entries and exits. This is a discussion of maximizing a strategy whether the system is good or bad. All in All out is the superior way to increase profits or keep losses low. --Point is being missed by many.
 
Bottom line-- traders who have been successful scaling out have duped themselves into believing that it helps with their profitability etc. However, they don't realize that the profits would be much more bountiful by letting the full winning position run. It's just common sense.
 
Quote from Buy1Sell2:

Bottom line-- traders who have been successful scaling out have duped themselves into believing that it helps with their profitability etc. However, they don't realize that the profits would be much more bountiful by letting the full winning position run. It's just common sense.
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Case in point.


I would have lost less money on my short trade today had I scaled out when it went in the money instead of letting it go back into red and hit my stop.


I took your advice and did not scale out and my loss ended up being greater on that trade than if I had scaled out. Hard to argue with the bottom line.








:)
 
Si.

When I sell 100,000 ES and I'm done selling, I inmediately buy back 50,000 ES, if the ES cannot retrace 50% of the move I created when selling 100,000 ES then I know the market is weak and sell another 100,000 ES. If the market retraces more than 50% of the move I created, then I buy the other 50,000 ES and can generally make some money. So scaling out is not as inferior as some may think.
 
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