SCALEING anybody

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Alpha322
Posts: 931
Joined: Fri Oct 30, 2009 4:45 pm

What is the term scaleing in and out, i think i actually do this, i tend to swing trade, not sure the minimum amount of ticks a swing trader go,s for but thats another story. Once i get a trade say of three ticks i close out. I then wait till the market direction of the price is stronger then nip in again, is this Scaleing in and out a good method for swing trading, by the way what is the average amount of ticks a swing trader would go for, Euler care to share :mrgreen:
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Euler
Posts: 26431
Joined: Wed Nov 10, 2010 1:39 pm

My definition of scaling in and out is using small multiples of the main stake you are looking to use and slowing adding or removing those stakes according to your confidence with the position. So say I want to get £1000 on, I may break that up into lots of £100 or £200 and slowly build up or exit that position. If you use too much in either direction you may cause the price to move so feeding building up a position like this, even at different prices is preferable to dumping money in the market.
Alpha322
Posts: 931
Joined: Fri Oct 30, 2009 4:45 pm

Euler wrote:My definition of scaling in and out is using small multiples of the main stake you are looking to use and slowing adding or removing those stakes according to your confidence with the position. So say I want to get £1000 on, I may break that up into lots of £100 or £200 and slowly build up or exit that position. If you use too much in either direction you may cause the price to move so feeding building up a position like this, even at different prices is preferable to dumping money in the market.
Many thanks indeed for that
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JollyGreen
Posts: 2047
Joined: Sat Mar 21, 2009 10:06 am

I tend to scale as described by Peter, I have never really called it scaling though. I use it in weaker markets to try and prevent having an impact on the trend. If I have caught a trend with £500 matched I may split the closing orders into £100 and look to feed them into the market so that they almost go unnoticed.
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