I’m interested in a scaling-in strategy. My entries aren’t that great. So it’s part of a risk management plan. Plus it really helps cut out the emotion starting small.
There’s a lot of theory on it online. But I’ve not really landed on examples. Size in relation to total size. When to buy. What your return will be etc.
Does anyone have any good resources they would be happy to share?
I’ve been trying to simulate it. Spreadsheet based, I’m not that smart for machine learning/AI, and want to try and keep it simple.
It has a trailing stop that closes the position. So the exit can be calculated easily. It generates random price movements.
The head scratching part is the stop %, scale in amounts, stock price all currently generate pretty poor results at lots of different values. You could be be up 10% from first entry, but you scale in badly, ie just before it turns down and you can nuke your return down to 0.5%.
Hopefully someone with experience can tell me if it’s a fools errand trying to do this!
[link] [comments] https://www.reddit.com/r/stocks/comments/177tukt/scaling_in_strategy/
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