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Scaling out — partial exits

Locking risk-free runners.

9 min · Beginner

What you'll learn

  • Plan partial exits at pre-set targets before entering a trade
  • Calculate the blended R-multiple of a trade with partial exits
  • Explain the trade-off between locking profit and capping the average win

Key takeaways

  • Scaling out sells a position in planned pieces, often thirds at T1, T2 and a trailed runner.
  • After T1 and a stop at breakeven, the runner becomes a risk-free position, barring gaps.
  • Blended R = total dollar result / 1R; in the example, outcomes ranged from -1R to +2.17R.
  • Partials reduce the swings in results but do not automatically increase expectancy.
  • The trade must still qualify on its T2 or final target of at least 2R.

Glossary

  • Partial exit — Selling part of a position at a pre-set target while keeping the rest open.
  • Runner — The final portion of a position left open to capture a larger move, usually with a trailing stop.
  • Blended R — The total dollar result of all exits in a trade divided by 1R.

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