Risk Management

Scaling In: Building a Position in Stages

Entering in multiple tranches reduces risk at the cost of full exposure from the start — done correctly.

Key rules

1. Enter initial tranche at signal, add confirmation tranche at next level
2. Calculate full position size before scaling — it must fit within max risk
3. Only scale into winning positions, never into losing ones
4. Averaging down into a losing trade violates risk management
5. Keep total position size within your 1–2% account risk rule

Scaling in means entering with a fraction of the intended position (e.g. 50%) at the initial trigger, and adding the remaining 50% at a defined confirmation point. This reduces average cost in a favourable move but requires careful sizing to ensure the full position still respects maximum risk.

Only scale into trades that are moving in your direction, never against. Averaging down into a losing trade violates risk management.