The golden rule to trading: keep your losses small, your winners big.
Scaling out does just the opposite, you always get hit with a full load, and your big winners only have half a load or less.
This example is another simple way of scaling in.
USDCAD 15M first entry and stop trailing.
M1 to add aggressively.
You can do the same for example, with D1 bars and adding on H4 or H1.
This adding (scaling in) system is using exactly the thread´s rules for entering.
So after the first entry on the bigger TF, you add on every signal but using the smaller TF.
You can limit your adding to 3 or 4. You can also divide your entries by percentage risk, instead of risking 1% per entry, you can risk half a percent, one-quarter of a percent, etc.
Doing this, ensures your winners are much bigger than your losers.
Here are the pics. the first chart shows all the entries, the second one is the M1 with the detail.
The last red arrow down is the exit given by the first M15 red candle.
Note that in this example (Friday), all the entries were winners. Sometimes the last entries will be small losers.
If you get stopped out in the beginning it will be most likely with only 1 position.
You can do the math on this one, and compare the difference, using only one entry or 5 entries.
You can also back-test some higher TF .
Have a great weekend.
Scaling out does just the opposite, you always get hit with a full load, and your big winners only have half a load or less.
This example is another simple way of scaling in.
USDCAD 15M first entry and stop trailing.
M1 to add aggressively.
You can do the same for example, with D1 bars and adding on H4 or H1.
This adding (scaling in) system is using exactly the thread´s rules for entering.
So after the first entry on the bigger TF, you add on every signal but using the smaller TF.
You can limit your adding to 3 or 4. You can also divide your entries by percentage risk, instead of risking 1% per entry, you can risk half a percent, one-quarter of a percent, etc.
Doing this, ensures your winners are much bigger than your losers.
Here are the pics. the first chart shows all the entries, the second one is the M1 with the detail.
The last red arrow down is the exit given by the first M15 red candle.
Note that in this example (Friday), all the entries were winners. Sometimes the last entries will be small losers.
If you get stopped out in the beginning it will be most likely with only 1 position.
You can do the math on this one, and compare the difference, using only one entry or 5 entries.
You can also back-test some higher TF .
Have a great weekend.
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