Scaling means entering or exiting a trade in parts instead of all at once. Done well, it reduces regret and smooths the equity curve. Done badly, it turns into averaging down on losers.
Scaling out (partial profits)
- Close half at 1–1.5R and move the stop to break-even.
- Let the rest run to 2–3R or trail it behind structure.
- Result: fewer full losses after a trade was in profit, at the cost of smaller big wins.
Scaling in (adding to winners)
Add a second position only after the first is in profit and its stop has moved to break-even, so the total risk never exceeds your planned 0.5–1%. Adding to winners is a professional technique; adding to losers is how accounts are lost.
Never average down
Buying more as price falls against you increases risk exactly when the trade is proving you wrong. In a prop challenge with an equity-based daily limit, it is one of the fastest ways to fail.