DislikedI've never seen a good reason to scale in. Most of the time this behavior is an avoidance technique because a person can't handle loss even if they say they can.Ignored
avoidance technique? couldn't say - only comments i've seen that subject came from kenfen69 ...
for me, it method of raising leverage while keeping risk near zero. idea is build up profit, then use most for riskless increase position size. the deal otherwise? ...there are provisos:
1. use with high entry uncertainty (as w/volatility squeeze per above case of .uj)
2. take poss slippage into account
3. have expectation of large (100+p for .uj) run target - to allow min 4-5 leverage rachets
4. trade in country with high economic freedom w/broker that allow 200x or more lev (unfortunately, i am loc in usa)
the last condition is probably most important... for me works best w/overseas demo's that permit lev 200x or more.
sadly, usa serves it's cronies instead of it's population - places like australia, canada, uk and europe are much better in this regard. here in the usa, reg agencies like CFTC are more interested in giving brokers cover to lim lever w/o fear of competition than in pursuing crooks (why did it so long to catch up with wasserman and corzine - and why is corzine STILL not in prison!!!). but hedging, lev lim and such help brokers line their pockets with money... much more important to cftc
bottom line pro/con scaling:
pro: if price moves in same direction w/o signif retrace, you make OBSCENE amount, one trade
con: if price whipsaws, you get only small loss or profit for your trouble
beyond that, one of most complicated trades to execute that i know of ... definitely not for beginners