Scaling in versus one-shot entries: which do you use?

One entry at one price is the clean way. Scaling in — adding as price moves — improves the average when you're right and multiplies the damage when you're wrong, especially if the adds are on a losing position.

Scaling in versus one-shot entries: which do you use? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your approach?

  • whether you add to winners, and how
  • your rules for position size across multiple entries
  • the scaling-in disaster or triumph that shaped your view
Scaling in versus one-shot entries: which do you use? — pip movement diagram
How a pip moves the exchange rate

The position sizing guide shows how to keep total risk bounded across entries.

Background: Position sizing: how to risk a fixed percentage per trade

How much you trade matters more than where you enter. A step-by-step method for sizing positions from your stop-loss and the amount you are willing to lose.

How do I calculate lot size from risk?

Divide the amount you are willing to lose by the stop distance in pips multiplied by the pip value per lot. For $50 risk, a 25-pip stop and $10 per pip per lot, that is 0.20 lots.

What is the 1% rule in trading?

A guideline to risk no more than 1% of the account on any single trade, so a losing streak doesn't cause a drawdown you can't recover from. It is a starting point, not a guarantee.

Read the full guide

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