Thread: Trade Entry/Exit - Dollar Cost Averaging

A discussion spawned about how one might go about trading breakouts given the low percentage of breakouts that ultimately lead to strong stage 2 growth trends.

Rather that distract that thread from its Weinstein discussion I am answering a question here posed to me by shadetreetrader regarding scaling entries & exits.

So this is not about a full Trading System discussion, rather a component of it.

FWIW I have an approach synthesised from Elder Triple Screen and others, and as said elsewhere I am not a short term player (Intermediate to Long term). That said I continue to try to learn and experiment to see if I can make money in shorter terms, but (honestly) for the most part my temperament is probably not suited to those time scales.

Here is a Weekly Chart that shows an open trade in my attempt to amplify what I have already written, which is not that complex.

I have some questions, but understand if you prefer not to disclose details.

If the blue solid & dotted line is the initial exit then the trailing S/L, then you add additional positions before the trailing S/L has risen above the previous entry point?
The reason I ask this is when I have previously scaled in, I waited until the S/L had risen above the initial entry, in order to reduce risk as much as possible but this has the disadvantage of entering much later in the trend.

Are the purple exit labels indicating the green M/A and what is their significance?

So the idea behind your scaling in method is you increase the risk as the trade progresses in your favour until you have a full position.
In the long run, the increase in brokerage on winning trades is compensated by reduced losses on losing trades.

I shall try this out in the next ASX share trading game, but use daily charts to suit the shorter 3 month duration.