Thursday, January 27, 2011
The Opposite of Pyramiding
While trend-followers often add to winning positions, relative-value traders usually scale-in and scale-out. I am gradually exiting my long MGEX/short CBOT position. It's great to have gains, but the market seems to be getting more volatile and smaller positions are more appropriate-- in addition to the prospect that MGEX is more "fully valued" at these levels.
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