Jim Dean Sage   Posts: 3022 Joined: 9/21/2006 Location: L'ville, GA  User Profile | I agree with Barry. I'm not sure what you mean by "rate", but I am familiar with scaling-in and out, am very familiar with various means of setting stops. If you're referring to a simple fixed-loss stop, then if you are using a similarly-simple fixed number of points as the offset, I suppose a weighted average entry price might be appropriate. But if you're using a stop with any degree of sophistication at all, such as ATR-based, or a dynamic stop such as trailing profit or chandelier, etc, then there's a lot more to it than just the entry price. Further - part if the reason for scaling in is often due to initial uncertainty of the move. If you're adding to the position, then that would imply the direction had been subsequently confirmed. This usually means to me that the certainty is greater, and would allow for somewhat tighter stops. But generalizations are nearly useless - stop logic is highly related to the kind of trade being taken. I think N's approach is a good one. It sticks with the initial plan unless you explicitly change it. Jmho fwiw. | |
