Scaling in (averaging in) builds a position in tranches as price dips below the entry, so each add improves your average price. It is the opposite of pyramiding, which adds into strength. Used deliberately at pre-planned levels it can turn a shaky entry into a strong average.
The danger is obvious: scaling into a falling market increases exposure exactly as the trade moves against you, so it must be bounded by a hard stop on the whole position and a fixed number of levels. It is not a substitute for being wrong.
Example
A long buys a third of its size at entry, another third 2% lower, and the last third 4% lower — three planned scale-in levels.
How Noon Barbari uses Scaling In
Every concept here is implemented in the platform. Open the relevant docs or tool to see it in action.
Set up smart orders in noonbarbari →Related terms
- Risk
Pyramiding
Adding to a winning position at fixed steps in your favour, up to a maximum number of add-ons.
- Risk
Position size
How many units of an asset a trade holds — derived from risk budget and stop distance.
- Risk
Stop loss
A pre-committed exit level that caps the maximum loss on a trade.
- Risk
Risk per trade
Dollar amount (or % of equity) you lose if the stop on a single trade hits.