Support Board
Date/Time: Sun, 24 Nov 2024 16:56:40 +0000
How exactly do "Scale in" and "Scale Out" work?
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| [2022-08-19 05:32:38] |
| MarkusK - Posts: 99 |
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Hi, I am still quite new to Sierra Chart and struggle to understand how exactly the options "Scaling Out" and "Scaling In" work, i.e. what they do exactly when I enable or disable them in the trading window. I read the documentation a couple of times now (Attached Orders: Scaling Out) but still cannot make sense of it. Attached orders are well explained there, even with multiple easily understandable examples, but the explanations about "Scaling Out" and "Scaling In" still elude me. It would be very appreciated if somebody could please explain what these options do exactly. Maybe even with an easy to understand example? |
| [2022-08-23 11:26:35] |
| Sierra_Chart Engineering - Posts: 17156 |
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Beyond the documentation we do not have any further information. What we recommend you do is experiment with these, using Trade Simulation Mode and replay: Trade Simulation Replaying Charts Sierra Chart Support - Engineering Level Your definitive source for support. Other responses are from users. Try to keep your questions brief and to the point. Be aware of support policy: https://www.sierrachart.com/index.php?l=PostingInformation.php#GeneralInformation For the most reliable, advanced, and zero cost futures order routing, use the Teton service: Sierra Chart Teton Futures Order Routing Date Time Of Last Edit: 2022-08-23 11:26:47
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| [2022-08-24 04:43:56] |
| MarkusK - Posts: 99 |
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Thanks for the advice! I played around with the simulation mode and simply experimented with the Scale In/Out settings, and now I fully understood what they do.
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| [2024-05-16 01:12:33] |
| joshtrader - Posts: 488 |
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This is my first time experimenting with this, though I should have done it a while back. Some info for anyone else searching for information on this topic. Let's say you want to have bracket orders (SL + TP) for a new long position. You select "use attached orders" in the trade window and so you place your order and have a pending child OCO pair of orders, the SL and the TP, which are X/Y ticks away from the parent order, defined by the settings in the trade window. You get filled and are now long 1 contract, and you now have a position with a linked OCO SL and TP order, each for 1 contract. If "Support Scale In" is enabled, even if you have "Use Attached Orders" selected, if you now add to your long position by 1 contract, you will now be long 2 contracts, and your existing SL+TP orders will be increased to a total quantity of 2 each. If you do NOT have "Support Scale In" enabled, then a new SL + TP OCO bracket will be placed at the offsets specified in the trade window, just as it would when you opened your original position. Let's say you're long 2 contracts and you want to close 1 contract by selling. If "Support Scale Out" is enabled, then even if you have "Use Attached Orders" selected, there will NOT be a new SL + TP OCO bracket created. The existing child SL + TP orders will be reduced by a quantity of 1. If you have a single SL + TP OCO bracket in place (which would have happened if "Support Scale In" was enabled when you increased your position above), then the SL and TP orders will be reduced from a quantity of 2 to a quantity of 1. If you sell 1 more contract to get flat, the OCO bracket orders will be canceled, as the position quantity is now reduced to 0. If you had multiple SL + TP OCO brackets in place (which would have happened if "Support Scale In" was disabled when you you increased your position above), then the SL+TP orders nearest or furthest will be reduced/canceled according to the setting in Global=>General Trade Settings. If "Support Scale Out" is not enabled, then there will be a new set of SL+TP OCO bracket orders placed when you reduce your position size. In my experience, this is almost never what you want. You almost certainly want the existing SL+TP orders to be reduced. So, the practical usage of this awesome feature is so you can automatically send SL+TP orders, either new sets of them or increasing quantity of an existing one, when opening and adding to a position, and THEN when you want to scale out of the position, you reduce the quantity of (or cancel) existing orders automatically, without having to attach new SL+TP orders. It's a great feature. |
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