Split your capital into piles
Don’t put all your eggs in one basket. Instead of committing your entire position on the first signal, divide your capital into smaller, equal “piles.” Each pile is one tranche of capital you deploy as the signals confirm, so a single entry never makes or breaks you, and you stay liquid enough to act on the next setup.
Scaling in
When a buy signal fires, deploy your first pile. If another buy signal fires on the same ticker, add your next pile on top: pile 1, then pile 2, then pile 3, building the position as conviction stacks up rather than guessing the perfect entry.
Scaling out
When a sell signal fires, you start to offload, taking the position back down in tranches as the signals turn. You let the system tell you when to lighten up instead of holding on and hoping.
- A single bad entry can't sink the account: risk is spread across piles.
- You keep dry powder ready for the next signal instead of being fully committed.
- The signals drive the timing: entries and exits are mechanical, not emotional.