AFT8 provides flexible position sizing & scaling for professional trading patterns
- All-In, Scale-Out.
- All-In, All-Out.
- Scale-In, Scale-Out.
Each mode governs how the system enters and exits positions in one or more tranches rather than using a simple “full-size in, full-size out” approach.
Scaling is primarily a risk-management technique. By entering or exiting a position in tranches, you control how much capital is exposed at each stage and can lock in gains or cut losses incrementally. In other words, scaling directly governs your per-trade risk profile—limiting drawdowns if the market reverses and preserving profits as the trade moves in your favor. AFT8 allows position compounding via manual user entry for safety. For 99% of traders, use: All-In, Scale-Out or All-In, All-Out if preferred. Scaling in is considered very risky for day trading and is only undertaken by the trader using controls for entry. AFT8 will place exits for any additional positions and manage the different legs via the Algo Trade Manager module.
1. All-In, Scale-Out.
- Entry Behavior: AFT8 enters the entire intended position size at once (“all-in”). You’ll be filled on your full number of contracts or shares as soon as your entry conditions are met.
- Exit Behavior: Instead of exiting the full position in one go, AFT8 gradually scales out—selling (or buying back) in predefined increments. You might specify, for example, that 50% of the position should exit at the first profit target, another 25% at a second target, and the remaining 25% at a final target.
- Why It Matters: This approach locks in profits early while still leaving some exposure to catch larger moves. You remove risk as the trade moves in your favor, rather than waiting for a single exit signal. It’s especially useful in trending markets where you want to “take chips off the table” without forfeiting the entire move.
2. All-In, All-Out.
- Entry Behavior: As with “All-In, Scale-Out,” you enter the full position size immediately upon the signal.
- Exit Behavior: You exit the entire position in one action—once your exit condition is triggered, AFT8 closes out 100% of the contracts at once. There is no partial scaling or staggered profit taking.
- Why It Matters: This is the simplest, most straightforward approach: you commit full capital up front, then remove everything once the exit criteria fire. It’s ideal when you want a clean, single-signal entry/exit and don’t wish to manage partial fills or multiple profit targets. It also removes the operational complexity of managing multiple exit orders.
3. Scale-In, Scale-Out.
Scaling in is also known as position compounding and is an advanced technique.
- Entry Behavior: Instead of entering full size at a single price, you build into the position over several tranches. For example, you might buy 25% of your total target position when a momentum threshold is first met, another 25% if price confirms strength at a second price level, and so on until you’re fully invested. These increments are defined in your AFT8 position size setting. You can set the position to full size or a smaller amount to allow build-up to full, or you can add or compound the full size as desired.
- Exit Behavior: Similarly, you stagger your exits. You might take off 20% of the position at an early profit target, another 30% at an intermediate retracement level, and the final 50% only when price hits your maximum profit objective or a tight stop is breached. These are controlled by stops, targets, and lots per leg via the Algo Trade Manager.
- Why It Matters: Scaling in allows you to reduce slippage and limit exposure in case the initial signal turns out to be a false breakout. Scaling out preserves gains incrementally, capturing parts of the move and minimizing the chance that a sudden reversal wipes out your entire profit. This two-way staggering provides the highest level of control over both entry risk and exit management.
Scale-In, Scale-Out in AFT8. With AFT8’s Scale-In/Scale-Out functionality, you can build or trim your position incrementally through the platform’s built-in trade entry and order-submission controls. From the moment your initial signal fires, you can allocate a portion of your total target size and then add more tranches as price confirms strength—AFT8 automatically handles each tranche behind the scenes. Likewise, when it’s time to take profits, AFT8 can peel off predefined percentages at successive profit levels. If you prefer manual intervention, you can also compound or reduce your position at any time using NinjaTrader 8’s native tools—Chart Trader, order tickets, or the DOM—while AFT8 continues to manage your strategy’s remaining scaling steps. Exits will be automatically added each time you compound your position size.
It is possible to enter on a pullback into the stop to get a better price or to build an iceberg-type position, or to add as the market is confirmed. The choice is up to the trader. AFT8 does not scale in by itself; this feature is disabled to protect traders who might blow up their accounts by averaging in without proper risk controls. Scaling in manually is enabled by the system and is considered reserved for very advanced traders who understand all the caveats of risk management.
How to Choose Between Them
- All-In, Scale-Out is ideal if you have very high conviction in your signal but still want to lock in profits gradually.
- All-In, All-Out works best when you want a clear, unambiguous entry and exit—no partials.
- Scale-In, Scale-Out is for highly dynamic markets where you’re uncertain about the signal’s strength; it lets you dial into the position as confirmation builds and peel off profits in stages.
In AFT8, you configure these modes via your strategy’s “Position Sizing and Scaling” settings. Position size is set via the Algo Entry module, and scaling out is set via the Algo Trade Manager module.