Traders Laboratory - View Single Post - Scaling In and/or Out
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Old 06-27-2007, 05:47 AM
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Re: Scaling In and/or Out

Hows this for a technique :- lets assume the Russel is in a reasonable tight range and you are anticipating a move down out of it.

Sell 2 units at the top of the range and cover 1 at the bottom lets say at +1.2 for arguments sake Move stop to -1. If price approaches the top of the range sell 2 more and rinse and repeat.

I have not used this technique for a while but it is possible to build a large multiple position that is essentially risk free (if you count the whole exercise as a single trade). long tight boxy ranges are good for this.

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