Who this is for — Anyone right on direction but wrong on timing. Scaling in splits entry into fractions with total risk calculated before the click.
Scaling in is entry in 2+ tranches on the same trade idea, instead of 100% size in one order. Tranches, percentages, and max risk are defined ex ante in the playbook.
In plain terms — Foot in the door (40%), load the rest (60%) only if the market confirms.
Typical schema (breakout)
| Tranche | Size | Trigger |
|---|---|---|
| 1 | 30–40% | Level breakout |
| 2 | 60–70% | Confirmed retest |
Single stop or stop per tranche — but total risk ≤ position sizing budget.
Scaling in vs averaging down
| Scaling in | Averaging down |
|---|---|
| Written plan pre-trade | Emotional add after loss |
| Total risk capped | Risk explodes |
| Market confirmation | Hope to recover price |
Typical mistake — Adding lots «to lower average price» after partial stop — that is not scaling, it is martingale.
Example — 1R total risk: 0.4R at breakout, 0.6R at H1 retest; false breakout → lose 0.4R, not 1R.
Summary card
- When: setup with timing uncertainty.
- Rule: tranches + max risk pre-click.
- Not: averaging down.
Silver path — Position management module. Index: Silver path.