Scaling Factor

[lethal3636]

G'day,

Can anyone describe the Scaling Factor function or direct me to a relevant thread. Nothing has appeared on search apart from the brief explanation in the Strategies section. I am wanting to scale into a position - how is this achieved exactly?

Thanks in advance,

Lee.

[admin]

The scaling factor is not related to "scaling into" a position -- poor choice of name on our part for this feature. The scaling factor is useful if you want to multiply the size of the trades you are making in APM by given factor, this is useful if you are trading signals from a source that you do not directly control (i.e. someone is providing you signals to trade in APM).

[lethal3636]

The scaling factor is not related to "scaling into" a position -- poor choice of name on our part for this feature. The scaling factor is useful if you want to multiply the size of the trades you are making in APM by given factor, this is useful if you are trading signals from a source that you do not directly control (i.e. someone is providing you signals to trade in APM).

Ok no worries - so how would one go about implementing a strategy that scales in? Will Alera allow 2 or more purchases of the same stock?

[admin]

Right now we don't have a generic system to scale into positions. However we do have order types such as On Trigger Long (OTL) and On Trigger Short (OTS), which places orders once a position opens. See https://aleratrading.com/forum/showthread.php?tid=132

You could use these order types to place a second LMT order to mimic scaling into a position (in 2 steps). You would however not be able to use scale in using 3 or more steps.