Spreading entries

[SanMiguel]

Just reading an article about spreading entries as a way of reducing risk. In the same way that some people close half a trade and let the other half run, this relies on entering a trade with smaller amounts and then adding to it when it goes in your direction.
Anyone do this?
I can see it of most use to S&R traders who are aiming for more than 100 pips on trades.

[daydreamer65]

Originally Posted by SanMiguel

Just reading an article about spreading entries as a way of reducing risk. In the same way that some people close half a trade and let the other half run, this relies on entering a trade with smaller amounts and then adding to it when it goes in your direction.
Anyone do this?
I can see it of most use to S&R traders who are aiming for more than 100 pips on trades.

Yep 1st brought to my attention on the Alternative Technical Templates. thread.

The principle is that you enter a trade with a small amount,
say 0.1 lot, ahead of the bigger move that you suspect is coming,
then once it takes off you feed into it accordingly.

[o990l6mh]

Originally Posted by SanMiguel

Just reading an article about spreading entries as a way of reducing risk. In the same way that some people close half a trade and let the other half run, this relies on entering a trade with smaller amounts and then adding to it when it goes in your direction.
Anyone do this?
I can see it of most use to S&R traders who are aiming for more than 100 pips on trades.

I've been briefly thinking about that as well. If taking partial profit makes sense (which it does) then so should the pyramiding into a trade.

Opinions from experienced traders would be very welcome on this subject.

[SanMiguel]

The one problem I can see with it is adding to you position just at the point price decides to reverse. However, that's the same as taking off half you position and having it reverse, you've lost all the money you could have had had you just opened and closed for the full position.

[o990l6mh]

Originally Posted by SanMiguel

The one problem I can see with it is adding to you position just at the point price decides to reverse. However, that's the same as taking off half you position and having it reverse, you've lost all the money you could have had had you just opened and closed for the full position.

Yeah, I guess it's a matter of trying to buy/sell retracements

[SanMiguel]

Originally Posted by o990l6mh

Yeah, I guess it's a matter of trying to buy/sell retracements

I would say that's longer term.
What about going short at a resistance line then after 25, 50 pips add lots.
Retracements are difficult to guage without an EMA or fibs neither of which I really believe in.

[o990l6mh]

Originally Posted by SanMiguel

I would say that's longer term.
What about going short at a resistance line then after 25, 50 pips add lots.
Retracements are difficult to guage without an EMA or fibs neither of which I really believe in.

Reaching a R line would be kinda a retracement IMO.

What you're suggesting sounds a bit like Tymens method of adding a lot when a certain STARC band level is reached.

I guess there are many ways, but remember that retracements happen in all TF, so it doesn'thave to be a longer term thing.

[SanMiguel]

Originally Posted by o990l6mh

Reaching a R line would be kinda a retracement IMO.

What you're suggesting sounds a bit like Tymens method of adding a lot when a certain STARC band level is reached.

I guess there are many ways, but remember that retracements happen in all TF, so it doesn'thave to be a longer term thing.

Adding to your position on retracements is kinda the buy the dips, sell the rallies. I'm talking more about adding to your position when it looks like it going the right way. You could use a retracement for that but I guess I'm focusing more on the entry. So, you go short on a resistance line but for only 25% of your normal position, this ensures you get a few pips out of the trade early if it goes your way and then once it has moved 25 or 50 pips in your direction, ie you now see the proper candle pattern, then you add the other 50% or 75% of your position. This stops you losing all 100% if it goes against you at the beginning.

[o990l6mh]

Originally Posted by SanMiguel

Adding to your position on retracements is kinda the buy the dips, sell the rallies. I'm talking more about adding to your position when it looks like it going the right way. You could use a retracement for that but I guess I'm focusing more on the entry. So, you go short on a resistance line but for only 25% of your normal position, this ensures you get a few pips out of the trade early if it goes your way and then once it has moved 25 or 50 pips in your direction, ie you now see the proper candle pattern, then you add the other 50% or 75% of your position. This stops you losing all 100% if it goes against you at the beginning.

Yeah I understand your thinking and I agree that it's more the same partial TP principle than what I suggested.

[SanMiguel]

Originally Posted by o990l6mh

Yeah I understand your thinking and I agree that it's more the same partial TP principle than what I suggested.

Just wondering if it's worth it. Generally, I would say the entry is the riskiest point but that's not to say adding on 50% of your position 50pips later is any more risky as it could reverse.
Generally exit points I don't have a problem with as I usually have a defined target and just close the whole trade so I don't have to worry about managing it anymore.
hmm...