Scaling out?

foredog · Feb 27, 2009

I know there is no right answer but i can't decide which is more favourable:

Taking off 1/3 of a trade once it's you're in profit equal to your stop

Reduces risk on any pullback/change of trend BUT reduces profitability if trade keep going your way

Running the whole position to exit signal or stoppped out

More profit if trade goes your way larger loss if it retraces

I guess it depends whether you favour reducing risk or maximising profits.

Any ideas on this?

minime69 · Feb 27, 2009

foredog said:
I know there is no right answer but i can't decide which is more favourable:

Taking off 1/3 of a trade once it's you're in profit equal to your stop

Reduces risk on any pullback/change of trend BUT reduces profitability if trade keep going your way

Running the whole position to exit signal or stoppped out

More profit if trade goes your way larger loss if it retraces

I guess it depends whether you favour reducing risk or maximising profits.

Any ideas on this?

i play it by ear. if onside and market hit res or sup then take prof on some of posy, if it then breaks through i can get back in anyway.

this works good for me, and unless you only trade once a day then you always have more chances anyway!

JRP2891 · Feb 27, 2009

Depends how you like your equity curve to look like i think. Whatever feels right for you would be my unhelpful answer.

senyorqueso · Feb 27, 2009

Ok, on that 1/3rd of your position what would your % winners be? Less than 50 and the answer's obvious.

Scaling out?

foredog

Experienced member

minime69

Established member

JRP2891

Established member

senyorqueso

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