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----- Original Message -----
From: <CRLeBeau@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, January 27, 2000 10:14
Subject: [RT] Re: Trading 3's
| In a message dated 1/25/00 11:36:35 PM Pacific Standard Time,
| dennis@xxxxxxxxxx writes:
|
| << For my own style of trading, it works better (proven by backtesting and
| real trading) to put all the contracts on at once and exit them all at
| the same time. >>
| >>If you enter with 3 positions you should be seeking the maximum return
on all three. <<
Then why not trade one position in a vehicle that gives me the reward to
risk ratio I seek? Why triple my transaction costs to have 3 positions? I
have read lots about this, but still don't know what's definitive. I
understand the percieved attractions of scaling in and out, and the
arguments against scaling, but I don't understand why I should multiply my
transaction costs if my plan forbids scaling. It seems that I have to accept
the transaction costs of scaling if that's what I do, but if I don't scale
trade, what is the cost benefit?
scaling out,
Michael
|