When a member has a Simple Bracket position active, the system will scale these out in a First In First Out manner. What this means is if a member started with 4 contracts and added on an additional 3, there will be 4 bracket pieces where the initial order took place and 3 bracket pieces based on the addition to the position. If the member goes to reduce this new position total by say 2, the first bracket quantity of 4 will be reduced by 2 leaving a remainder of 2 for this specific bracket piece.
Using the same example above, if the member reduces their position by 5, the first 4 brackets will be removed and 1 of the remaining 3 bracket pieces will be taken away. This would leave the member with 2 contracts and 2 bracket pieces.
As an addition, if a member adjusts their bracket and then scales out, the existing bracket will be scaled. Let's say a member has a position of 3 contracts open which are part of a simple bracket order. If a member started with a stop loss of 100, but modified it to be 50, and then reduced their position size by 2, 2 of the existing brackets will be removed even though the strategy has changed. If the member reduces a further 2, or in this case exits the remaining contract and enters into a new position, the remaining bracket will be removed and a new bracket and position will be created with the new strategy.
Lastly, a member can scale out of a simple bracket strategy even if they do not have a bracket strategy selected.
See the video below to learn more about scaling out of positions while using Simple Brackets:
Multi-brackets can be an exciting way to manage a trade, whether it’s allowing multiple stop strategies or different levels of trade exit. Scaling on these can be tricky for a few reasons, we’ve made the logic as simple as possible to make scaling simplistic.
If a member enters into a multi-bracket strategy that contains 2 brackets, where the first bracket has a quantity of 2 and the second bracket has a quantity of 1 (total quantity of 3), your order panel will hard scale by quantities of 3. For example, 3, 6, 9, 12, etc. If you place a trade for a quantity of 5 of these strategies (15 contracts), you can scale out in increments of 3 and this will reduce each of the brackets accordingly. In this instance, scaling out for 3 of your 15 contracts will reduce 2 from the first bracket and 1 from the second, scaling out by 6 would reduce the first bracket by 4 and the second bracket by 2.
If a bracket is deleted or is removed due to being hit by the trade, the multi-bracket strategy will now scale out as if it were a simple bracket strategy - this is due to the remaining brackets no longer matching the multi-bracket strategy. In this instance, since the order panel quantity is still hard-locked for the multi-bracket strategy, you can simply switch the strategy to “none” and scale out of the remaining contracts and brackets in this manner.
See the video below to learn more about scaling out of positions while using Multi-Brackets:
See the video below to learn more about scaling out of positions while using Ratios from the Trade Copier: