Greetings -- MK wrote:
What is the benefit of scaling in and out vs. treating them as separate systems? They basically are separate system. --------------------------------- I agree that entries made from secondary signals, or whatever you would call the signals that trigger the scale in, are a separate system. Test them separately. In my experience and research, neither scaling in nor scaling out often improve a system. This is based on an understanding that risk is fully assessed before the initial portion of the trade is entered, and that the full amount of the trade as determined by the risk calculation is not taken until the final scale in has been triggered. That is, if three scale ins are perm itted, then the initial position must be taken with only 25% of the amount permitted by the risk calculation. If the alternative is to take a full position at the first signal, and then add as the trade is in progress through scale in trades, the risk guidelines will have been violated. Thanks for listening, Howard
