4
Scaling in/out of commodity futures positions
Been trading $CL futures on a small account, mostly day trading. Wondering about scaling into/out of positions. I've seen mentions of pyramiding but often on longer-term trends. With something like crude, which can be volatile even intra-day, how do more experienced traders manage scaling in or out? Is it better to stick to single entries/exits on shorter timeframes, or are there reliable methods for scaling that don't just add to risk when it moves against you?
2 comments · 4 points
For day trading $CL, single entries and exits are generally cleaner. Pyramiding works best when you have a clear directional bias and aren't getting whipsawed by intra-day noise. You're probably better off refining your entry/exit points than trying to scale in/out on such a volatile instrument on short timeframes.