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Thread: scale in vs. all in

  1. #1

    scale in vs. all in

    question related to entry on the robot signals ... have you tested to see if scaling in vs. going all in on the first day produced better results? My assumption is that going all in on day 1 of the signal produces the best r/r, but I certainly would be curious to know if by (for example) buying 20% at the first target price, 20% on the second target price, and so on ... if we get a higher r/r or lower drawdown.

    I would be more than happy to test this and present my findings here if you can provide historical data of the trade entry price on each day. Including the probabilities and r/r for each day could help to fine tune the tests further as well.

  2. #2
    The back-tests have shown that it is better to be early than late after a signal. Hence, if you keep part of the position for later, then you are effectively late on average. However, it might be psychologically easier to gradually build on a winning position. Psychology can impact returns if you make the wrong decisions due to a large investment in a single trade.

    Do not forget that the Robots only trade one position and not a portfolio.



    Pascal

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