Scaling in instead of one entry?

I can guess the reason of this problem. This is a very difficult market. Because of their nature, currencies fluctuate more than stocks. One has to implement not only the techniques like scaling in, but many other similar tactics to reduce the risk and maximize profits, like, managing a complete portfolio of small trades spread over many levels, several time frames, multiple pairs, in both directions, etc. This is what I call a balanced portfolio that allows one to keep on milking this cow, drop by drop.

If you review the recent change in trading rules introduced in the past 10 or so years, most of them are aimed at discouraging traders to benefit from temporary price fluctuations and arbitrage trading. Banning Counter Trades (so called "Hedging") and enforcing FIFO in some countries was the biggest blow. These tactisc helped traders in keeping track of their trades and the market flow at the cost of paying double spreads, plus, they remained immune to a great degree from spikes and surprise "WTF" moves. It allowed them to keep their risks and rewards within their tolerance limits. They were happy in paying the cost for these benefits.

This is not the market where you speculate, enter and wait. There are so many factors affecting currency prices that one has to keep on hunting small profits, also taking small blows. You can also swing trade, but that has a risk of losing most of your gains in one night while you are asleep. Setting stop losses is another issue in this volatile market.

If one wants to carry only a few trades based on speculation, has not only to comprehend the structure and behavior of this market and selecting certain factors or market behaviors but also needs to be right in his/her speculation.................................. and no one can confidently speculate this market, at least in current times.

Yes JL in theory was great and same with Turtles, the mentality is sound and great but FX the majority of the time, the market does not move like it does in more volatile markets like stock and energy markets. FX price movements are mean reversion in nature. You have on one hand big international companies who use FX to hedge risk, and opposite pension funds and hedge funds that work with dealers and brokers who use FX market to generate capital and profit. Then there are central banks and sovereign entities who control the market basically. When a large move happens it is usually from sovereign entity aka a surprise stimulus package(BOJ) which doesn't happen that often. So day to day action often just fluctuating prices and up and down movement from brokers dealers and commercial importers/exporters hedging.

However im sure you could tailor a system that averages up for certain pairs or a certain niche that would work.

Shorter time frames, use one entry or two maybe tight entries most
Swing or position trading scaling in very effective.

TOTALLY AGREE ON THE MEAN REVERSION comment about this market.

I scale into positions, but, not in the manner livermore did....I do a fair bit of calculating reversal targets then further analyze as we approach those targets...

I find scaling in useless, you will lose less if your entry is wrong for sure, but you won't win much either, there is no such thing as winning in the markets without risk, if you dont risk, no win, simple as that, however, scaling out is better, because it let you stay in longer and ride the trends.

Scaling in is fantastic. Get in a decent trend and your potential profit increases quite a bit, while reducing your risk significantly (risk to capital, although profit is always at 'risk').

Scaling out is just another way to reduce your risk, but pulling in profits without significantly damping your current, profitable trades.