"Scaling out" is inferior behavior

[JSSPMK]

Of course he can.

You're holding for a home run and scale out trader keeps scaling out, how is it you're doing the same?

 

[Buy1Sell2]

My strategy where I enter and exit all in all out over time will always outperform my strategy where I scale in and out.

 

[Buy1Sell2]

You're holding for a home run and scale out trader keeps scaling out, how is it you're doing the same?

You're trying to compare one trader to another trader. This is about comparing an individual trader to themselves. It's inferior to select scaling in/out versus all in all out.

 

[_eug_]

I think the point is that its better to take off the full position at a s/r level and re-enter full if its a break out or reverse full position if the level holds.

 

[Buy1Sell2]

I think the point is that its better to take off the full position at a s/r level and re-enter full if its a break out or reverse full position if the level holds.

If that is your strategy is that, then yes--all in all out is the correct move.

 

[Newc2]

I'm disappointed that after 167 pages there have been no posts for nearly 1 year.

All in all out wins?

How would an emotionless robot trade?

1. All in all out?
2. Scale in?

or

3 Scale out?


Here's a fact which I'm not sure affects anybody's thoughts but....


"The more mature the trend the closer you are to the end of it"

 

[tomorton]

Maybe an efficient use of capital would be deploy your maximum risk per trade when you confirm your high probability set-up? So if your threshold for opening a long-side trade is a 70% probability of price rising, you risk 100% of your normal risk (e.g. 2% of your account capital). If the trade goes your way and goes into profit equal to your initial risk, start reducing the position as the probability of further price rise decreases according to your TA.

So if probability of further price rise drops to 60%, reduce your risk to 75%. At 50%, reduce to 50%. At 40%, reduce risk to 25% (substitute your own ratios).

Even a low-probability position will sometimes make a profit when it takes the less probable route forwards.

 

[ironchef]

I'm disappointed that after 167 pages there have been no posts for nearly 1 year.

All in all out wins?

How would an emotionless robot trade?

1. All in all out?
2. Scale in?

or

3 Scale out?


Here's a fact which I'm not sure affects anybody's thoughts but....


"The more mature the trend the closer you are to the end of it"

All in All out does not work in thinly traded options or thinly traded underlying: You move the market going all in and going all out.

Or, imagine BRK buying $10B AAPL going all in and selling $10B IBM going all out?

 

[GotherL]

Scaling out is just insurance for them they don't end up taking a big loss cause that usually ends up with them taking bigger losses to try to break even.

 

[Buy1Sell2]

All in All out does not work in thinly traded options or thinly traded underlying: You move the market going all in and going all out.

Or, imagine BRK buying $10B AAPL going all in and selling $10B IBM going all out?

Ridiculous examples and arguments